FCCPC Expands Approval List for Digital Loan Apps Amid Growing Scrutiny
The Federal Competition and Consumer Protection Commission (FCCPC) has greenlit more digital money lenders, commonly referred to as loan apps, boosting the roster of approved companies to 211 by the close of October.Out of the 211 companies, 172 have secured full approval from the Commission, while 39 have conditional approval.
This represents an increase from the 161 fully approved companies and 40 conditionally approved ones in September.This uptick indicates a rising interest among companies seeking FCCPC’s endorsement in the digital lending industry, despite its tarnished reputation due to allegations of borrower harassment and defamation by certain lenders.
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Furthermore, the FCCPC resumed registering digital money lending apps after the March 27, 2023 deadline, opening doors for more businesses to enter the market.In parallel, the number of loan apps under the FCCPC’s watchlist has surged from 55 in September to 84 at the end of October. These watchlisted apps are suspected of unethical practices.
Some of the apps on the watchlist 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, among others.Apart from those on the watchlist, the FCCPC, in collaboration with Google, has removed 45 loan apps from the Google Play Store for operating illegally in Nigeria.
This list of approved loan apps is part of the registration initiative initiated by the FCCPC last year. The Commission, in collaboration with the Joint Task Force (JTF), developed the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, with the aim of promoting fair, transparent, and beneficial lending opportunities for Nigerians.
The need for this registration was prompted by the questionable practices of some loan apps in the country, especially illegal ones that have been accused of rights violations, unfair practices, and exorbitant interest rates, among other infractions.
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