The Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), has announced its plan to publish a list of illegal (unregistered) digital loan apps operating in Nigeria. Additionally, the government will delist two legal (registered) loan apps from the Google Play Store for engaging in harassing practices towards Nigerians.
According to a statement signed by the Executive Vice Chairman/ Chief Executive Officer, Babatunde Irukera, the FCCPC has included digital money lenders that have failed to register under its guidelines on its watchlist for strict surveillance and necessary action.
The FCCPC stated, “The list of those digital money lenders will be made available on the commission’s website. The Commission will continue to scrutinise listed DMLs and periodically update the list to ensure only businesses that consistently and completely comply with the spirit and intention of the regulatory framework are allowed to do business legally in Nigeria.”
The commission advised Nigerians to exercise caution and discretion in selecting digital money lenders and recommended consumers to patronize only the ones on its approved list to avoid falling victim to illegal and prohibited lending and recovery practices.
In regards to permanently delisted digital lenders, the FCCPC identified them as Sycamore Integrated Solutions Limited and Orange Loan, along with their respective apps – ‘Getloan’ and ‘Camelloan.’ The decision to delist them came after the commission’s investigation into their practices.
The FCCPC uncovered duplicity by at least two otherwise legally registered digital money lenders, who were on the commission’s approval list but engaged in illegal and unregulated practices using APK to attract borrowers.
Currently, about 180 loan apps have been partially or fully registered and approved by the FCCPC to operate in Nigeria.
