Approved loan apps in Nigeria increases by 18.8% to 380 in February amidst economic palaver

Digital lending platforms, known as loan apps, have continued to increase. Information from the Federal Competition and Consumer Protection Commission (FCCPC) revealed an 18.8 per cent surge in approved loan apps from 320 in October 2024 to 380 in February 2025. 

A further study, reported by Nairametrics, shows that out of the 380 digital lenders that either secured approval from the FCCPC or Central Bank of Nigeria (CBN), 322 were granted regulatory licenses by the commission while 16 were licensed by the financial regulator. However, the remaining 42 loan apps operate under conditional approval.

Loan app adoption among Nigerians has continued to grow over time due to the flexibility in its usage, accommodating style especially for underserved communities, and quick approval times. 

The claim is not far-fetched, as 2024 data from CBN showed that loan appetite surged by over 300 per cent, representing an equivalent of about N7.52 trillion in March 2024. There were 311 digital lenders as of September 2024. As of now, that figure has now grown by 22 per cent. 

Meanwhile, the growing number of loan apps has been causing major concerns for economic experts who feel it exposes borrowers to associated risks such as getting scammed by fake platforms, exposure of personal information, and the high interest rate accustomed to the process.   

In response to these risks, the FCCPC noted that it has continued to monitor the digital lending space. Its regulatory activities have led to the delisting of 47 loan apps from the Google Play store, while 88 are currently under its surveillance.

The Executive Commissioner of Operations at the FCCPC, Dr Adamu Abdullahi, explained that the main aim of registration and approval of loan apps in the country is to identify the companies behind the platforms. This allows the commission’s Interim Regulations Unit to hold them responsible for any out-of-bound service.

Abdullahi noted that without the regulation, there is no way to trace these digital lenders as the FCCPC continues to balance the continuous operations of the loan apps and the customers’ defaults in repaying their loans.

He added that despite several challenges, loan apps are playing important roles in the economy by acting as rescuers amidst the difficult economic situation.

Similar Read: Are loan apps in Nigeria safe? What you need to know by Michael Animasaun.

Loan apps appraisal 

In a 2024 State of App Marketing in Sub-Saharan Africa report released by AppsFlyer in conjunction with Google, keywords such as ‘naira to dollar’ and ‘loans’ emerged as the most searched financial terms between January 2023 to August 2024.

Also in the report, financial services witnessed overall growth from January 2023 to August 2024. This extends to the surge in the installation of financial platforms such as digital lending and banking apps. 

The impressive growth cut across various metrics in the Sub-Saharan African region and across both iOS and Android stores. The report showed that overall installs grew significantly in sub-Saharan Africa through the first half of 2024, rising by 23 per cent year-on-year. 

That steady upward trend continued for Android into Q3 of 2024 – up by 20 per cent in the same quarter of 2023 – but iOS took a step back, dipping by 14 per cent.

As these platforms have become a popular choice for individuals seeking financial relief, some lenders resort to aggressive tactics, including sending embarrassing messages to borrowers and displaying personal photos of borrowers across social media when repayments are being delayed. These actions have led to significant distress, with victims losing jobs and facing public humiliation.

This action saw the FCCPC  encourage Nigerians to report any instances of harassment from loan apps particularly after loan repayment failures by sending complaints via email to @fccpc.gov.ng or message FCCPC directly on X.

They can also visit fccpc.gov.ng and navigate to the “File a Complaint” section to fill in details such as the loan app’s name, contact details, loan amount, and a description of the issue.

While the FCCPC is currently playing the role of regulator in the digital lending space, financial experts have warned that the commission would need to step up beyond registering and granting approval to digital lenders and start proper policing of their operations.

“It is not enough to issue a licence or grant approval based on the fact that they have met certain conditions set by the FCCPC, the regulator needs to monitor these lenders and ensure that they are operating in ethical ways, especially, how they disburse loans and how they recover their loans,” said Mr. Gbolagunte Ajayi, a financial analyst. 

The expert added that many of the licensed loan app companies are engaging in the same unethical practices that loan sharks are known for and the FCCPC seems to be oblivious to this.