The number of companies operating as digital money lenders, commonly known as loan apps, in Nigeria has surged to 161, as revealed by the Federal Competition and Consumer Protection Commission (FCCPC).
This marks an increase from the previously approved 154 digital lenders reported on August 4, 2023.
The FCCPC has also expanded its watchlist of loan apps from 20 in April to a total of 55, indicating the rapid growth of the digital lending market in Nigeria despite challenges and complaints from borrowers.
New companies are seeking FCCPC approval to enter this burgeoning business.
Of the 161 companies with full approval, 40 others have received ‘Conditional Approval’ and are in the process of securing full approval.
FCCPC expands watchlist for unethical loan apps in Nigeria
The FCCPC has identified 55 loan apps suspected of engaging in unethical practices and placed them on its watchlist.
Some of these apps include Cashlawn App, Easynaira App, Crediting App, Yoyi App, Nut Loan App, Cashpal App, and many more.
The FCCPC initiated this registration exercise in response to concerns about the activities of loan apps in Nigeria, particularly illegal ones, which have been accused of rights violations and unfair practices.
Some of these apps charge exorbitant interest rates and engage in unethical debt recovery practices.
The Commission aims to promote fair, transparent, and beneficial lending opportunities for Nigerians through its Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, developed in collaboration with the Joint Task Force (JTF).
This initiative seeks to address privacy violations, unfair lending practices, and other issues associated with digital lending in Nigeria.