The Federal Competition and Consumer Protection Commission (FCCPC) released a list of approved digital money lenders in Nigeria on 25 May 2023. Titled ‘The Status of Registration of Fintech/Digital Companies with FCCPC on the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022’, the list was published on FCCPC’s website.
In one of our previous updates, we reported that the FCCPC issued the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022 (the ‘Digital Lending Framework and Guidelines’). The purpose of this is to protect consumers from “loan sharks” in Nigeria’s digital lending space. This is by virtue of the FCCPC’s statutory duty to protect and promote the interest and welfare of consumers. One of the ways the FCCPC does this is by ensuring the adoption of measures that guarantee that goods and services are safe for intended use. And it is quite commendable to see the support Google has been giving to the FCCPC by ensuring that these “loan sharks” are taken off the Play Store.
It is for the purpose of safeguarding consumers in the digital lending space that the FCCPC approved 173 digital money lenders to operate in Nigeria. This is by virtue of the Digital Lending Framework and Guidelines.
Earlier, the FCCPC finally adopted 27 March 2023 as the deadline for registering digital lending platforms with it. This is after the multiple extensions for registrations. According to the FCCPC, the 27-May extension was necessary to ensure the completion of ongoing registrations as well as to prevent significant market disruptions.
List of 173 digital money lenders approved
According to the published list, 173 loan apps were approved: 119 loan Apps obtained full approval while 54 loan apps obtained conditional approval.
Fully Approved
The 119 loan apps that obtained full approval are as follows:
- Sycamore Integrated Solutions Limited
- Trade Depot
- Tajow Investment
- Blue Ridge Microfinance Bank Limited
- Grolatech Credit Limited
- Branch International Financial Services Limited
- P2vest Technology Limited
- Creditwave Finance Limited
- Keenest Tech Service Limited
- Fairmoney Micro Finance Limited
- Altracred Finance Investment Limited
- Crevance Credit Limited
- Menacred Company Limited
- Afrowide Development Limited
- Red Planet Nigeria Limited
- Afrofirst mobile and technology company limited
- Rankcapital Limited
- Ibs Global Investment Company Limited
- Lendvisery Services Limited
- Renmoney Microfinance Bank LImited
- Swipebill Technology Nigeria Limited
- Hometown Fintech Limited
- Giasun Technology Nigeria Limited
- Be resources Limited
- Rockit Lenders Nigeria Limited
- Pivo Technology Limited
- Yes Credit Company Limited
- Irorun Technologies Limited
- Csense Limited
- Supreme Help Cooperative Society Limited
- Orcom and Orcom Business Support Limited
- Payhippo Limited
- Easycheck Finance Investment Limited
- Quark Financial Nigeria Limited
- Edmond Solutions Company Limited
- Ted Rocket Limited
- Penaid Limited
- Arve Limited
- Dover Credit Limited
- Ragekay Global Investment Limited
- Maywood Lending Limited
- Linkepark Technology Nigeria Limited
- Mangnet Lending Limited
- Rubystar Global Limited
- Bestfin Nigeria Limited
- Fubri Century Company Limited
- Berly Spring Global Limited
- Rock Financial Limited
- Phoenix Payment Solution Limited
- Value Driver Technology Solution Limited
- Nextpayday Limited
- Blackcopper Service Limited
- Trafalgar Associate Limited
- Windville Financial Nigeria Limited
- Orange Loan & Purple Credit Limited
- Carbon Microfinance Bank Limited
- Neo-link Technology Company Limited
- Finnew Fintech Limited
- Otp Internet Technology Limited
- Red Harbor Fintech Limited
- Paylater Hub Limited
- Skitloan Nigeria Limited
- Raceova Nigeria Limited
- New Credage Nigeria Limited
- Betterlending Company Limited
- Fast-point Integrated Limited
- Apex Lending Limited
- Piska Tech Nigeria Limited
- Princep Credit System Limited
- Omalend Service Limited
- Pockful Finance Limited
- Highcredit Nigeria Limited
- Hollandale Nigeria Limited
- Pay Financial Technology Service Limited
- Al Capital Solution Limited
- Newedge Finance Limited
- Papichou Technology Limited
- Goharvest International Limited
- Mino sparks Limited
- Xgo Finance Limited
- Primera Microfinance Bank
- Credit Tech Lending Company
- Prosperity Archipelago Limited
- Finesest Limited
- Singularity Technology Nigeria Ltd
- Econ Mart Fintech Limited
- Pennee Technologies Limited
- Oxymon Solution Limited
- Lantan Technology Limited
- Applink Capital Nigeria Limited
- Yegon Tech Limited
- Fezotech Nigeria Limited
- Eric Vsta Limited
- Moblaspay Company Limited
- Paycredit Limited
- Niz Services Limited
- Mino Sparks Limited
- Flo Wood Lending
- Liberty Assurance Limited
- Uni Technology Nigeria Ltd
- Trade Lenda Com Limited
- Creditville Microfinance Bank
- Letshego Microfinance Bank
- Kiowope Capital Limited
- Veendhq Limited
- Ucplus Advance Limited
- Maven Finance Limited
- Aella Financial Solutions Limited
- Fluna Capital Limited
- Newedge Finance Limited
- Ta Prime Limited
- Regxta Global Service Ltd
- Provest Limited
- Jm Rubinus Limited
- Crossroads e-payment systems Limited
- Consynergy Limited
- Fintered Innovation Limited
- Afrosay Fintech Limited
- Mim Finance Bank
Conditionally Approved
The loan apps that obtained conditional approval from the FCCPC are:
- Tripodbase Limited
- Owoafara Fintech Service
- Ajax Lending Limited
- The Platform Digital Network Limited
- Zippy Capital Limited
- Lending Edge Limited
- Lendha Technologies Limited
- Doja Lemaire Global Limited
- Paydayhub Online Nigeria Limited
- Retail Booster Limited
- Citadele Capitals Limited
- Fewchore Finance Company Limited
- One Payout Limited
- Lidya Global Limited
- Kwaba International Limited
- Finpadi Technologies Limited
- Umba Digital Solutions Limited
- Fintrade solutions limited
- U Technology
- Stellar Finance Limited
- Dash Innovations
- Grit-Tech Limited
- Caelim Technologies Limited
- U Thinking Nigeria Limited
- Eaton Hill Investment Limited
- Creditpro Business Support Services Ltd
- Muska Tech Limited
- Helppo Africa Limited
- Renners Africa Limited
- Pebble Financial Tech Limited
- Kiakia Bits Limited
- Wealthbridge Capital Partners Limited
- Trivista Capital Limited
- Atimi Lending Ltd
- Zuvy Technologies Limited
- Rockshield Microfinance
- Dot Microfinance Bank Limited
- Allawee Technologies Limited
- Lucred Technology Limited
- Nolt Finance Limited
- Soko Lending Limited
- Citygate Global Investment Limited
- Olivermead Investment Limited
- Lighting Finance Technology Nigeria Limited
- Memo Finance Limited
- Hoil Investment Limited
- Kiredi Rock Company Ltd
- Glosh Tech Limited
- Clemo Fresh Co. Ltd
- Passeco Technology Nig, Ltd
- Trust Cen Limited
- Riverbank Partners Limited
- Prime Avis Investment Services Limited
- Riverbrand Technology Limited
Why digital money lenders should get the FCCPC approval now
First, companies without the FCCPC approval will not be able to operate legally in Nigeria’s digital lending space. This comes with considerable risks, including reputational damage, erosion of trust, loss of revenue, sanctions, and even suits.
Second, the FCCPC has indicated that the Digital Lending Framework and Guidelines is only an interim measure. Therefore, it is expected that a more robust regulation for digital lending businesses in Nigeria may be underway. Such a substantive regulatory framework is expected to involve other relevant agencies, including the Central Bank of Nigeria (CBN). This is because apart from money lenders registered under the money-lending laws of the states, there are also the unit, state, and national microfinance banks (MFBs) and finance companies (FinCos) licensed by the CBN. MFBs and FinCos offer loans and other credit facilities to micro, small, and medium enterprises (MSMEs). The CBN also supervises these MFBs and FinCos by setting interest rates and enforcing compliance. Therefore, the FCCPC’s interim Digital Lending Framework and Guidelines may just be the easiest way to get into the digital lending market at this time.
Before a substantive regulatory framework is introduced, digital money lenders should take advantage of the FCCPC’s interim Digital Lending Framework and Guidelines. Notwithstanding the shape the substantive regulation takes however, we are always available to provide professional guidance.
Conclusion
As a result of the menace of “loan sharks” in Nigeria involving data-privacy violations and other unwholesome practices, the FCCPC issued the Digital Lending Framework and Guidelines in August 2022. This requires digital money lenders that are either operating in Nigeria or looking to operate in Nigeria to comply with the new regulatory regime.
Digital money lenders that have been conditionally approved will need to fully meet FCCPC’s requirements in order to become fully approved. Based on the work Infusion Lawyers does in this space for digital money lenders in the country, I am well aware that part of the requirements of obtaining FCCPC’s approval is completing a data protection compliance audit approved by the Nigerian Data Protection Bureau (NDPB). This will require an audit of the applicant’s operations and standards. Without the requisite approvals, non-compliant digital money lenders who continue to operate in the country face the risk of a ban in Nigeria. To ensure compliance with FCCPC’s framework and guidelines, ensure that you consult rightly and timeously.