The federal government through the Federal Competition and Consumer Protection Commission (FCCPC) has registered and approved 211 loan apps, at the end of October, 2023.
The 211 companies comprise 172 that have received full approval from the commission and 39 others with conditional approval.
Recall that the commission has developed the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 in partnership with the Joint Task Force (JTF), in order to support equitable, open, and advantageous alternative lending alternatives for Nigerians.
The unsettling operations of loan apps in the nation, particularly, the illicit ones, due to claims of unfair practices and rights abuses, among other things, also made registration necessary.
Some of the loan apps charge interest rates that violate the ethics of how lending is done and are involved in naming and shaming which is a violation of people’s privacy with respect to how these lenders recover loans, among other violations.
Meanwhile, the number of loan apps under the watchlist increased from 55 in September to 84 as of October.
