By:Mfon Celebrity
The Federal Competition and Consumer Protection Commission (FCCPC) has approved 173 digital lending companies to operate in the country.
Out of the 173, 119 have fully approved and 54 have tentative approval. After loan apps started draining Nigerians, the FCCPC began a enrollment drive to cover citizens from the atrocities of these apps.
It released a ‘Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022 ’ to regulate the digital lending space and make enrollment and blessing a prerequisite for companies seeking to operate in the space.
After shifting its deadline many times, it eventually espoused March 27, 2023, as the close of enrollment . The commission has now released a list of approved apps that can operate in the country. Companies without blessing won't be suitable to operate in the space.
Opining on its trouble against digital lending apps in August 2022, the FCCPC said," In addition to the enforcement action( s) and in headway of the desire to promote fair, transparent, and mutually salutary indispensable lending openings piecemeal from traditional lending to consumers, theinter-agency Joint Regulatory and Enforcement Task Force has developed and mutually espoused a Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending, 2022, as the first and interim step to establishing a clear nonsupervisory frame.
"This becomes enforceable incontinently." It requires authorization to do in digital lending; it provides a limited doldrums period for being businesses to misbehave in order to continue in digital lending.
Some of the approved loan apps listed by the commission include Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited, among others.
Loans without the FCCPC’s blessing will be removed from the Play Store by Google and unapproachable for download.
In November, Google Play blazoned updates to its inventor Program Policy, which commanded that digital plutocrat lenders in Nigeria, India, Indonesia, the Philippines, and Kenya must conform to nonsupervisory rules.
This was anticipated to come into force on January 31, 2023. In March, Google took down hundreds of unapproved loan apps from the Play Store in Kenya, according to a report on TechCrunch.
The Nigeria Data Protection Bureau in February 2023, revealed that, a public commission made up of civil agencies was working in tandem to check the conditioning of illegal loan apps in the country.
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