Federal Competition and Consumer Protection Commission’s Active Regulation of Digital Lending in Nigeria
Digital lending is always changing.
There are many loan apps in Nigeria.
The FCCPC has started important steps to make this area clear and safe for users.
The FCCPC in Nigeria has made rules for digital lending and has allowed 154 loan apps to work in the country.
Highlighting the FCCPC’s Latest Actions
The FCCPC has been unyielding in its efforts to improve transparency and ethical practices in the digital lending space:
- Fresh Approval List:
- The FCCPC disclosed an updated list, naming 154 loan app companies sanctioned to operate within Nigeria.
- This updated list is not merely a repetition; it is more exhaustive, detailing specific loan apps managed by the approved companies.
Key Insight: This pivotal move by the FCCPC facilitates a transparent system where customers can effortlessly identify the enterprises behind their favored apps. This significantly diminishes app duplicity by these entities.
- A Comprehensive Perspective: While 154 companies got the green light, there’s more to the story:
- The commission gave a conditional nod to an additional 40 companies.
- This brings the overall tally of acknowledged loan app entities to 194.
Approved Loan Apps Conditionally Approved Apps Nextpayday Soko Loan Palmcredit Creditmoney Flypay Lucred … …
- Ethical Monitoring and Actions:
- To combat unethical maneuvers in this sector, the FCCPC made public a watchlist spotlighting 20 loan apps that might be guilty of such behaviors.
- In a proactive measure, the FCCPC asked Google to remove particular apps from the Play Store that were on this watchlist.
Highlighted Apps on Watchlist: Getloan, Joy Cash-Loan, Camelloan, Cashlawn, Nairaloan, and more…
As Babatunde Irukera, the CEO of FCCPC, pointed out:
“Our partnership with Google aims to ensure that only apps with regulatory sanctions are accessible on their platform.”
Read Also: [Updated List] List of Fake Loan Apps in Nigeria 2023
Stressing on Compliance and Consequences
According to Irukera, compliance isn’t just a choice. All Digital Money Lenders (DMLs) must adhere to the FCCPC’s Guidelines. Failing to do so isn’t only a violation but turns the entire operation illicit.
Point of Focus: The FCCPC highlighted that they’ve removed nine unapproved loan apps, encompassing Wiftkash app, Hen Credit Loan App, Cash Door app, among others.
The commission unequivocally states:
“For digital money lenders, adhering to the Limited Interim Regulatory Framework and Guidelines for Digital Lending 2022 isn’t optional but mandatory to legally operate in Nigeria.”
The Broader Perspective and Vision
This isn’t a lone wolf operation. The federal government, together with the FCCPC and the Central Bank of Nigeria, is actively steering the digital lending wheel. Their core intent is clear:
- Shield Nigerian consumers from potential harassment by lenders.
- Ensure that the lending milieu remains fair, transparent, and trustworthy.