Loan apps on the Play Store will lose the ability to access users’ contacts or photos after May 31 2023. The Federal Government announced that it would enforce Google’s latest policy, aligning with Nigerian authorities’ efforts to curb privacy invasions by loan‑app firms. Recent government actions have targeted violations of customer privacy, including the Federal Competition and Consumer Protection Commission’s (FCCPC) registration of 170 out of the 200 loan apps operating in the country.
In April 2023, Google updated its policy to protect loan‑app users in Nigeria and other regions that have become accustomed to aggressive loan‑retrieval methods. The update states: “Policy preview (effective May 31 2023): This article previews changes included in our April 2023 policy updates. We are updating our personal loans policy to state that apps aiming to provide or facilitate personal loans may not access user contacts or photos. We are introducing additional requirements for personal loan apps targeting users in Pakistan, which must submit country‑specific licensing documentation to prove their ability to provide or facilitate personal loans.”
These changes follow Google’s broader revision of its Developer Programme Policy, which requires digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya to comply with regulatory rules or be removed from the Play Store by January 31. In Nigeria, only lenders that have completed the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022 (as amended) and obtained a verifiable approval letter from the FCCPC will be permitted on the Play Store.
Commenting to the press, FCCPC Chief Executive Officer Babatunde Irukera welcomed the policy, noting that Google was “institutionalising our regulatory effort as a policy, which is very welcome.” He added that the move aligns with the FCCPC’s enforcement stance and supports proper regulatory oversight of the industry. Irukera emphasized that Google had examined the regulatory landscape and prioritized the same objectives as the commission.
The FCCPC recently approved 173 digital‑lending applications to operate in Nigeria—119 with full approvals and 54 with conditional approvals. This regulatory push became necessary after loan apps began harassing Nigerians by sending defamatory messages to their contacts and engaging in other intrusive practices. The commission’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022 aim to make registration and approval a prerequisite for operating in the digital‑lending space.
Although Google’s policy prohibits apps that promote personal loans requiring repayment in full within 60 days, many loan apps in Nigeria still violate this rule, exposing users to confidential data leaks. Speaking on Arise TV about the commission’s recent registration drive, Irukera said, “We also want to restrain what kind of information they are able to pull off people’s phones and what they are able to do with that information, especially with respect to making contact with people on the contact list, and their loan recovery practices; the kind of language they use, the times they call, and what they say.”
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