FCCPC approves 173 loan application and bans unlicensed internet banks

173 applications for digital loans to operate in the nation have been accepted by the Federal Competition and Consumer Protection Commission.

54 of the 173 have provisional permissions, while 119 have full approvals. The FCCPC launched a registration push to shield individuals from the abuses of these applications when loan apps began bothering Nigerians.

To govern the digital lending market and create registration and approval requirements for businesses wishing to operate there, it published a “Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022.”

After several changes to the registration closing date, it was finally set to March 27, 2023. A list of authorized apps that may be used throughout the nation has now been made public by the commission. Businesses won’t be allowed to operate in the area without authorization.

Commenting on its effort against digital lending apps in August 2022, the FCCPC said, “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 Lending, 2022 as the first and interim step to establishing a clear regulatory framework.

“This becomes enforceable immediately. It requires permission to proceed in digital lending; it provides a limited moratorium period for existing businesses to comply in order to continue in digital lending.

“The guidelines also mandate different service providers in the relevant ecosystem (such as banks, access/download platforms or stores, technology providers and payment systems) to require regulatory approval before providing services.”

Branch International Financial Services Ltd, 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 loan applications cited by the commission.

Google will remove unapproved loans from the Play Store and make them unavailable for download.

Google Play updated its Developer Program Guidelines in November, requiring digital money lenders 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 article, Google removed hundreds of unapproved lending apps from the Kenyan Play Store in March.

A national committee made up of government authorities was working together to stop the activities of illegal lending apps in the country, according to information released by the Nigerian Data Protection Agency in February 2023.