FCCPC has now approved 194 loan apps in Nigeria, watchlisted several others

The Federal Government of Nigeria, through the Federal Competition and Consumer Protection Commission (FCCPC), has announced the reinstatement of 154 loan apps, giving them full approval to operate in the country.

The Loan Apps with full approval according to FCCPC include; Clan App, Nextpayday App, Aladdin Digital App, Kobogo App, Oxloan App, Paylater App, shoptopup App, Flypay App, and Pennee app, among others.

The commission added that Forty (40) other companies have been issued conditional approval, which brings the total loan app companies recognized by the Commission to 194 in Nigeria.

Among the 40 other companies with conditional approval are Getloan, Joy Cash-Loan, Camelloan, Cashlawn, Nairaloan, Eaglecash, Moneytreefinance Made Easy, Luckyloan, and Cashme, Crediting, Swiftkash, Hen Credit loan, Nut loan, Cash door, Cashpal, Nairaeasy gist loan, Swiftcash, and others.

According to the Chief Executive Officer of FCCPC, Mr Babatunde Irukera, some Digital Money Lenders (DMLs) have turned to the usage of Android Package Kits (APK) file formats to reach customers outside of the Google Play Store.

He said some of these DMLs appear to be using this method to avoid regulatory compliance. All DMLs must, therefore, adhere to the guidelines, regardless of whether they plan to function through APK file formats, be uploaded to the Play Store, or use any other methods. He added that any such operation becomes illegal if the Guidelines are not followed.

Read More: Loan apps cannot be banned in Nigeria because they operate from anywhere- FG

FCCPC’s battles with loan apps in Nigeria

The Federal government of Nigeria, through the Federal Competition and Consumer Protection Commission (FCCPC), approved 173 digital lending platforms to operate in the country months ago. Of the 173 apps, 119 had full approvals while 54 had conditional approvals.

The commission 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.

Additionally, Google updated its policy on personal loan apps, which could have significant implications for the industry. According to a report, the tech giant pushed an update to its Personal Loans policy for apps on Play Store to restrict loan apps from accessing users’ sensitive information like photos, external storage, videos, contacts, precise location, and call logs.

Speaking on this, the Commission declared that it would punish a list of the country’s illegal (unregistered) digital lending platforms. According to the commission, it will be for their own safety, and Nigerians should be aware of the country’s certified digital lenders list.

Consequently, the Commission announced that it had added 20 digital money lenders that had refused or failed to register under its guidelines on its watchlist for strict surveillance and necessary action.

In a statement signed by the Executive Vice Chairman/ Chief Executive Officer, Babatunde Irukera, the FCCPC said, “The commission has also placed digital money lenders that have refused or failed to register under the guidelines on its watchlist for strict surveillance and necessary action.”

Recently, 18 digital lending platforms (DLPs) were delisted from the Google Play store for violating registration rules and guidelines. According to the commission, the 18 digital money lenders that it delisted, and asked Google to delete, were either operating without regulatory approval or in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines).

The registration and approval process of lending platforms by the FCCPC aims to protect Nigerians from many unguided atrocities, as many Nigerians reported incessant harassment from these loan apps.

Read More: FG delists 2 registered loan apps for harassment, vows more clampdowns