FG Approves 172 Additional Loan Applications and FairMoney The operation of 172 digital loan applications, including Fairmoney in Nigeria, h...
FG Approves 172 Additional Loan Applications and FairMoney
The operation of 172 digital loan applications, including Fairmoney in Nigeria, has received approval from the Federal Competition and Consumer Protection Commission (FCCPC).
However, just 54 of the 173 received provisional approvals, while 119 received full approvals.
The escalation was brought on by the persecution of Nigerians using lending apps.
According to FCCPC, the registration campaign was launched to safeguard individuals against abuse by these apps.
It published a "Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022" in order to do this.
This was created to govern the online lending industry and impose registration and approval requirements for businesses looking to enter the market.
After several extensions, the commission declared March 27, 2023, as the final day for registration.
A list of authorized apps that may be used throughout the nation has now been made public by the commission. Businesses lacking approval won't be allowed to operate there.
It listed several of its approved lending apps, including Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technologies Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited.
Companies without authorization won't be allowed to operate in the sector, according to FCCPC.
In August 2022, the commission decided to resume its campaign against online lending services.
The statement read: "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 is immediately enforceable. It stipulates a brief moratorium time during which existing firms must comply in order to continue with digital lending; it requires approval to proceed with it.
The guidelines also require various service providers in the relevant ecosystem to obtain regulatory clearance prior to offering their services (including banks, access/download platforms or stores, technology providers, and payment systems).
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