The Federal Competition and Consumer Protection Commission (FCCPC) has approved 173 loan apps in Nigeria.
54 of the 173 have conditional approvals, and 119 have complete approvals. The FCCPC launched a registration campaign to defend citizens from the atrocities of these apps after loan apps began harassing Nigerians.
To regulate the digital lending market and require registration and approval for businesses wishing to operate there, the government published a “Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending.”
After several changes, the registration closing date was ultimately set to March 27, 2023. The commission has now made public a list of authorised applications that may be used nationwide. Businesses will not be allowed to operate in the area without approvals.
In August 2022, the FCCPC stated this regarding its campaign against digital lending apps: “In addition to the enforcement action(s), and in furtherance of the desire to promote fair, transparent, and mutually beneficial alternative lending opportunities apart from traditional lending to consumers, the inter-agency Joint Regulatory and Enforcement Task Force has developed and mutually adopted a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending.
“This becomes enforceable immediately. It requires permission to proceed with digital lending; it provides a limited moratorium period for existing businesses to comply and continue with digital lending.
The guidelines also mandate that different service providers in the relevant ecosystem (such as banks, access/download platforms or stores, technology providers, and payment systems) require regulatory approval before providing services.”
The commission mentioned Branch International Financial Services Limited, Fairmoney Microfinance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited as just a few approved loan applications.
Google will remove unapproved loans from the Play Store and make them inaccessible for download.
Google Play updated its Developer Program Policy in November, requiring digital money providers in Nigeria, India, Indonesia, the Philippines, and Kenya to comply with legal requirements. This policy was expected to go into effect on January 31, 2023. According to a TechCrunch story, Google removed hundreds of unapproved loan apps from the Kenyan Play Store in March.
A national group made up of government agencies was working together to stop the activities of illegal loan apps in the country, according to information released by the Nigerian Data Protection Bureau in February 2023.
