Many loan apps yet to register as FCCPC deadline nears

In recent years, the proliferation of loan Apps in Nigeria has risen.

The Nigerian market has witnessed the emergence of various fintech companies offering digital financial services to the population, including loan apps.

Recall the Federal Competition and Consumer Protection Commission (FCCPC) had given the loan companies till March 27, 2023, to register their presence as digital money lenders (popularly known as loan apps) as the online lending space had almost been taken over by quacks with questionable practices.

However, as the deadline for registration of loan apps in Nigeria approaches, the Federal Competition and Consumer Protection Commission (FCCPC) disclosed that the number of registered loan apps in the country has surged to 131.

This figure was recorded as of February 28, according to the Commission’s database. However, only 92 of the 131 companies have secured full approval, while the remaining 39 secured conditional approval.

This development is a positive one for the financial sector, as it promotes healthy competition and enhances financial inclusion. Analysts believe that the registration of loan apps in Nigeria has several advantages for both borrowers and lenders.

It protects borrowers, improves access to credit, reduces the risk for lenders, improves credit scores, and increases confidence in the industry. It is important for loan apps to comply with regulations and register with appropriate authorities to ensure that they are providing safe and reliable lending services.

The Federal government had since 2021, wielded the big stick on loan apps that constantly exploited customers and others with very outrageous interest rates.

The Chief Executive Officer of the FCCPC, Babatunde Irukera, also accused some of the loan apps of resorting to unethical, obnoxious, and unscrupulously exploitative practices in the industry.

To further curb the menace of the loan apps, the FCCPC went ahead to order payment systems operators, telecommunication companies, and Mobile Network Operators (MNOs) to stop the illegal loan apps from accessing their services.

To give more backing to the process of delisting the defaulting apps, the FCCPC had last year, issued a 90-day notice to all the digital money lenders to get registered in compliance with the body’s guidelines.

The first notice expired in November 14, 2022, and the FCCPC graciously extended the deadline to January 31, 2023.