FG Approves 173 Loan Apps, Bars Illegal Online Banks

173 petitions for digital loans to function in the nation have been authorized by the Federal Competition and Consumer Protection Commission.

54 of the 173 have provisional clearances, and 119 have complete permissions. The FCCPC launched a registration campaign to defend citizens from the crimes of these apps after lending apps began pestering Nigerians.

To control the digital lending market and establish registration and clearance requirements for businesses wishing to function there, it published a “Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022.”

After several changes to the register closing date, it was ultimately set to March 27, 2023. A catalog of authorized applications that may be used in the nation has now been made public by the commission. Businesses won’t be allowed to function in the area without permits.

In August 2022, the FCCPC made the following statement regarding its campaign against digital lending apps: “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 Lendin.”

“This is effective right away. It stipulates a brief suspension time during which current companies must obey in order to continue with digital financing; it needs approval to progress with it.

The rules also require various service providers in the pertinent environment to obtain governmental clearance prior to offering their services (including banks, access/download platforms or shops, technology providers, and payment systems).

Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited are just a few of the accepted credit applications mentioned by the commission.

Google will delete unapproved loans from the Play Store and make them inaccessible for distribution.

Google Play updated its Developer Program Policy in November, requiring digital money providers in Nigeria, India, Indonesia, the Philippines, and Kenya to abide by legal requirements.

It was anticipated that this would go into effect on January 31, 2023. According to a TechCrunch story, Google removed hundreds of unauthorized lending applications from the Kenyan Play Store in March.

A national group made up of government agencies was working together to stop the actions of unlawful lending applications in the country, according to information released by the Nigerian Data Protection Bureau in February 2023.

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