The FCCPC greenlights new loan apps, expanding its roster to 211 companies

The Federal Competition and Consumer Protection Commission (FCCPC) has extended its approval to more digital money lenders, commonly referred to as loan apps, bringing the total list of authorized companies to 211 by the end of October.

This roster comprises 172 companies that have received full approval from the Commission, while 39 others have secured conditional approval. In September of the same year, the count of fully approved companies was 161, with an additional 40 holding conditional approvals.

This upswing in approvals reflects the ongoing interest of new entrants seeking FCCPC’s endorsement for digital lending ventures. This renewed registration process for digital money lending apps, initiated after the March 27, 2023 deadline, is facilitating an influx of companies into the market.

Moreover, the number of loan apps on the FCCPC’s watchlist, tasked with safeguarding consumer rights, has risen from 55 in September to 84 at the close of October.

These watchlisted apps are suspected of engaging in unethical practices, including harassment and defamation of borrowers. Some of the apps under scrutiny include Cashlawn App, Easynaira App, Crediting App, Yoyi App, Nut Loan App, Cashpal App, Nairaeasy Gist Loan App, Camelloan App, Nairaloan App, Moneytreefinance Made Easy App, Cashme App, Secucash App, Creditbox App, and Cashmama App. Others include Crimson Credit App, Galaxy Credit App, Ease Cash App, Xcredit, Imoney, Naira Naija, Imoneyplus-Instant, Nairanaija-Instant, Nownowmoney, Naija Cash, and Getloan.

In addition to these watchlisted apps, FCCPC, in collaboration with Google, has removed 45 loan apps from the Google Play Store for illegal operations within the country.

The FCCPC’s registration of loan apps is a follow-up to the exercise initiated last year. They introduced the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, in partnership with the Joint Task Force (JTF) to promote equitable, transparent, and advantageous lending options for Nigerians.

The registration drive was prompted by concerns over the conduct of loan apps in the country, particularly the illicit ones, which have been accused of violating people’s rights and engaging in unfair practices. Some of these apps charge exorbitant interest rates that contravene ethical lending standards and engage in public shaming, infringing upon individuals’ privacy in the process.

In a recent interview with InfoStride News, Mr. Babatunde Irukera, the Chief Executive Officer of the FCCPC, highlighted that the issues surrounding digital lenders in Nigeria are part of a global challenge. He stated, “Our concern is similar to global challenges with respect to digital lending. Technology is an incredible tool and platform for expansion and shared prosperity; however, it is sadly also a potential tool for exploiting and impoverishing people. We are now certain that those who are willing to do business ethically have come within the Framework, while those determined to engage in illegal and abusive conduct find other means.”