The Federal Competition and Consumer Protection Commission (FCCPC) has taken steps to regulate digital lending in Nigeria. After numerous loan apps began harassing Nigerians, the FCCPC launched a registration drive to protect citizens from the potential harm caused by these apps.
The FCCPC 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. The guidelines mandate that all companies providing digital lending services in Nigeria must be registered with the FCCPC before they can operate.
The deadline for registration was initially scheduled for December 31, 2022, but was later extended to March 27, 2023, to allow companies more time to comply. The commission has now released a list of approved loan apps that can operate in the country, including Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited, among others. Companies without FCCPC approval will not be able to operate in the space.
Google Play Store has also taken steps to enforce these regulations. In November, Google Play announced updates to its Developer Program Policy, which mandated that digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya must conform to regulatory rules. This was expected to come into force from January 31, 2023.
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Sometimes in March 2023, Google took down hundreds of unapproved loan apps from the Play Store in Kenya. Loans without FCCPC approval will be removed from the Play Store by Google and will be unavailable for download.
