The number of companies officially registered as digital lenders, popularly known as loan apps, has surged to 492 as more operators rush to comply with new regulations by the Federal Competition and Consumer Protection Commission (FCCPC).
The rise follows the implementation of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which came into effect on July 21. The rules mandate that all digital lenders register with the FCCPC within 90 days or risk fines of up to ₦100 million or 19% of annual turnover, as well as the disqualification of directors for up to five years.
FCCPC data shows that as of May, there were 425 registered lenders — meaning 67 new registrations were recorded in the past four months. Of the 492 approved firms, 434 have received full approval, 36 have conditional approval, and 22 are licensed by the Central Bank of Nigeria (CBN), which exempts them from FCCPC registration but still subjects them to oversight.
Meanwhile, 103 unregistered lenders remain on the Commission’s watchlist pending regulatory action.
FCCPC’s Executive Vice Chairman, Tunji Bello, said the new framework was necessary to address rising cases of unethical lending practices. “Nigerians have endured harassment, data breaches, and defamation from unregulated digital lenders. These regulations draw a clear line that innovation is welcome, but not at the expense of consumer rights,” he said.
The 2025 lending regulations prohibit pre-authorised lending, unethical marketing, and access to customers’ contact lists or photos. They also mandate clear disclosure of loan terms, fair interest rates, and joint registration for partnerships.
The President of the Money Lenders Association (MLA), Gbemi Adelekan, said the new framework would compel lenders to use credit bureaus and promote ethical lending. He added that many new entrants are former bankers seeking to remain active in the financial ecosystem.
Despite ongoing registration drives, the FCCPC said it would continue working with the CBN, Google, and other stakeholders to eliminate harassment and data abuse in Nigeria’s lending market.
