The Federal Competition and Consumer Protection Commission (FCCPC)
has approved the operation of 172 digital loan applications including Fairmoney in Nigeria.
However, 119 out of 173 had full approvals while 54 were given conditional approvals.
The development was triggered by harassment from loan apps to Nigerians.
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FCCPC stated that the registration initiative was to protect citizens from maltreatment from these apps.
To achieve this, it released a ‘Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022.’
This was designed to regulate the digital lending space and make registration and approval a prerequisite for companies seeking to operate in the space.
The commission marked March 27, 2023, as the close of registration after extending its deadline multiple times.
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.
It listed Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited amongst others as some of its approved lending apps.
FCCPC affirmed that companies without approvals will not be able to operate in the space.
The commission recalled its fight against digital lending apps in August 2022.
It 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.”
