Nigerian Government Cracks Down on Illegal Loan Apps and Delists Non-Compliant Ones

The Nigerian Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), has taken decisive action against illegal loan apps operating in the country. The FCCPC has announced its plans to release a list of unregistered digital loan apps and has vowed to delist two registered loan apps from the Google Play Store for harassing Nigerian consumers.

In a statement signed by the Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, the FCCPC emphasized its commitment to monitor and take necessary action against digital money lenders that have refused or failed to register under the commission’s guidelines. These unregistered lenders will be placed under strict surveillance, and the list of such digital money lenders will be made available on the FCCPC’s website.

The commission urged Nigerians to exercise caution and discretion while selecting digital money lenders and advised them to only patronize lenders listed on its approved list. This measure is to protect consumers from falling victim to illegal and prohibited lending and recovery practices.

The FCCPC has taken stern action against permanently delisted digital lenders, including Sycamore Integrated Solutions Limited and Orange Loan, alongside Purple Credit Limited, and their respective apps ‘Getloan’ and ‘Camelloan.’ This decision followed the commission’s investigation into the apps, during which duplicity was discovered in the practices of otherwise legally registered digital money lenders on the commission’s approval list. These firms were found to be engaging in the use of APK to attract borrowers, a process deemed illegal and unregulated.

Currently, about 180 loan apps have been registered (partially or fully) and approved by the FCCPC to operate in Nigeria. The commission reaffirms its commitment to scrutinizing these approved digital money lenders regularly and updating the list to ensure compliance with regulatory guidelines, thus ensuring only legitimate businesses can operate legally in the country.