FG Bars Illegal Lending Platforms, Approves 173 Loan Apps
The Federal Competition and Consumer Protection Commission (FCCPC) have approved 173 digital lending applications to operate in the country.
According to FCCPC, “Out of 173, 199 have full approvals while the rest has conditional approvals. After the loan apps started harassing Nigerians, we began a registration drive to protect citizens from the atrocities of these apps.”
The regulatory body released a ‘Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022’ to regulate the digital lending space and make registration and approval a prerequisite for companies seeking to operate in the space as part of its plans to enforce actions in furtherance of the desire to promote fair, transparent and mutually beneficial alternative lending opportunities apart from traditional lending to consumers as the first and interim step to establishing a clear regulatory framework.
The guidelines also mandate 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 FCCPC has listed some of the approved loan apps, which include Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfin1wance Bank Limited, and Creditwave Finance Limited amongst others.
However, loan apps without the FCCPC’s approval will be removed from Play Store by Google and unavailable for download.
In February 2023, the Nigeria Data Protection Bureau revealed that a national committee, made up of federal agencies, was working in tandem to clip the activities of illegal loan apps in the country.