Federal Govt Approved 211 Loan Apps In October
In a significant move towards regulating the digital lending landscape, the Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has recently approved and registered 211 loan apps as of October 2023.
This milestone, achieved through the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending developed in collaboration with the Joint Task Force (JTF), signifies a pivotal step in fostering fair, open, and beneficial lending alternatives for Nigerians.
Among the approved companies, 172 have secured full approval from the commission, while an additional 39 have received conditional approval, signifying a stringent evaluation process aimed at safeguarding consumer interests.
The imperative for this regulatory action stems from concerns surrounding the dubious practices of certain loan apps, ranging from exorbitant interest rates that violate lending ethics to privacy infringements through tactics like naming and shaming during the loan recovery process.
The FCCPC’s vigilance has led to an expansion in the watchlist, encompassing 84 loan apps, up from 55 in the preceding month.
Notable apps on this watchlist include Cashlawn, Easynaira, Crediting, Yoyi, Nut Loan, Cashpal, Nairaeasy Gist Loan, Camelloan, Nairaloan, Moneytreefinance Made Easy, Cashme, Secucash, Creditbox, and Cashmama.
Additionally, apps like Crimson Credit, Galaxy Credit, Ease Cash, Xcredit, Imoney, Naira Naija, Imoneyplus-Instant, Nairanaija-Instant, Nownowmoney, Naija Cash, and Getloan have also come under scrutiny.
Highlighting its commitment to curbing illicit operations, the FCCPC, in collaboration with Google, has taken decisive action by delisting 45 loan apps from the Google Play Store.
These apps were found to be operating illegally within the country, underscoring the authorities’ dedication to safeguarding consumers from unauthorized and potentially harmful lending practices.
The FCCPC’s efforts stand as a testament to their proactive approach to not only regulate the digital lending landscape but also to protect consumers from exploitative and unethical practices.
By prioritizing fairness, transparency, and consumer rights, the commission aims to foster a digital lending environment that is conducive to the financial well-being of all Nigerians.
This collaborative initiative between regulatory bodies and tech platforms marks a crucial step forward in ensuring that the digital lending ecosystem in Nigeria operates on principles of integrity, accountability, and respect for consumer rights.