The Federal Government through its Federal Competition and Consumer Protection Commission (FCCPC) has authorized the operation of 173 digital lending applications in the country.
There are 119 full approvals and 54 conditional approvals out of the 173. The FCCPC launched a registration push when loan apps began tormenting Nigerians in order to shield individuals from the abuses of these apps.
The commission has now released a list of approved apps that can operate in the country. Companies without approvals will not be able to operate in the space.
Speaking on its effort against digital lending apps in August 2022, the FCCPC said, “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, 2022 as the first and interim step to establishing a clear regulatory framework.
This becomes enforceable immediately. It requires permission to proceed in digital lending; it provides a limited moratorium period for existing businesses to comply in order to continue in digital lending.
“The guidelines also mandate different service providers in the relevant ecosystem (such as banks, access/download platforms or stores, technology providers and payment systems) to require regulatory approval before providing services.”
Some of the approved loan apps listed by the commission are: Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, Creditwave Finance Limited amongst others.
Loans without the FCCPC’s approval will be removed from Play Store by Google and unavailable for download.
Google Play updated its Developer Program Guidelines in November, requiring digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya to abide by legal requirements.
According to report by TeachCrunch, Google had in March down hundreds of unapproved loan apps from the Play Store in Kenya.
