173 applications for digital lending to operate in the country have been approved by the Federal Competition and Consumer Protection Commission.
54 of the 173 have conditional approvals while 119 have full approvals. The FCCPC started a registration drive to protect Nigerians from the atrocities of loan apps after they began harassing people.
It issued a “Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022” to regulate the digital lending industry and require registration and approval for businesses wishing to operate there.
It finally decided to close registration on March 27, 2023, after repeatedly shifting its deadline. The list of approved apps that can be used in the country has been made public by the commission. Organizations without endorsements can not work in the space.
The FCCPC said, “In addition to the enforcement action(s), 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 statement was made regarding the FCCPC’s action against digital lending apps in August
“This becomes enforceable right away. Digital lending can only proceed with permission; it gives a restricted ban period to existing organizations to consent to go on in computerized loaning.
“The guidelines also require various service providers in the relevant ecosystem (such as banks, access/download platforms or stores, technology providers, and payment systems) to obtain regulatory approval before providing services,” the guidelines state.
Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited are among the loan applications that have been approved by the commission.
Google will remove loans that have not received approval from the FCCPC from the Play Store and make them unavailable for download.
Google Play made changes to its Developer Program Policy public in November. These changes required digital money lenders in Kenya, India, Indonesia, Nigeria, and the Philippines to abide by regulations.
It was anticipated that this would take effect on January 31, 2023. According to a TechCrunch report, Google removed hundreds of unapproved loan apps from the Play Store in Kenya in March.
In February 2023, the Nigeria Information Security Department uncovered that a public council, comprised of government organizations, was working couple to cut the exercises of unlawful credit applications in the country.