FG to Delist Illegal Loan Apps in Nigeria

The Federal Government has announced its intention to release a list of illegal digital loan apps operating in Nigeria.

The government made the announcement through the Federal Competition and Consumer Protection Commission (FCCPC) on Thursday.

The move, Daily Report Nigeria learnt was aimed at ensuring consumer protection and upholding regulatory guidelines.

In addition, the FCCPC planned to delist two legal loan apps from the Google Play Store for their reported harassment of Nigerians.

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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.

“The list of those digital money lenders will be made available on the commission’s website.

“The Commission will continue to scrutinize listed DMLs and periodically update the list to ensure only businesses that consistently and completely comply with the spirit and intention of the regulatory framework are allowed to do business legally in Nigeria.”

FCCPC further warned Nigerians to exercise caution and discretion regarding digital money lenders.

To avoid falling victim to illegal and prohibited lending and recovery practices, the FCCPC recommended that consumers only patronize digital lenders on its approved list.

In response to its investigation, the FCCPC has permanently delisted certain digital lenders.

They included the Sycamore Integrated Solutions Limited, Orange Loan, and Purple Credit Limited, along with their respective apps, ‘Getloan’ and ‘Camelloan,’

The commission stated that its decision was based on evidence gathered during its investigation.

It claimed the firms used Android Application Package (APK) to attract borrowers which was both illegal and unregulated.

The commission said:

“In the course of the commission’s continuing investigation and tracking of these illegally operating digital money lenders, the commission has discovered duplicity by at least two otherwise legally registered digital money lenders on the commission’s approval list.”

FCCPC revealed that it has registered and approved approximately 180 loan apps to operate in Nigeria.

The apps have undergone a partial or full registration process to ensure compliance with regulations, it added.