Of the 173, 119 have full approvals and 54 have conditional
approvals. After loan apps started harassing Nigerians, the FCCPC began a
registration drive to protect citizens from the atrocities of these apps.
It 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.
After shifting its deadline multiple times, it finally adopted
March 27, 2023, as the close of registration. The commission has now released a
list of approved apps that can operate in the country. Companies without
approvals will not be able to operate in the space.
Commenting on its effort against digital lending apps in
August 2022, the FCCPC said, “In addition to the enforcement action(s) and 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 becomes enforceable immediately. It requires
permission to proceed in digital lending; it provides a limited moratorium
period for existing businesses to comply in order to continue in digital
lending.
“The guidelines also mandate different service providers in
the relevant ecosystem (such as banks, access/download platforms or stores,
technology providers and payment systems) to require regulatory approval before
providing services.”
Some of the approved loan apps listed by the commission
include Branch International Financial Services Limited, Fairmoney Micro
Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited,
Carbon Microfinance Bank Limited, Creditwave Finance Limited amongst others.
Loans without the FCCPC’s approval will be removed from Play
Store by Google and unavailable for download.
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.
In March, Google took down hundreds of unapproved loan apps from the Play Store
in Kenya according to a report on TechCrunch.
In February 2023, the Nigeria Data Protection Bureau revealed
that a national committee, made up of federal agencies, was working in tandem
to clip the activities of illegal loan apps in the country.