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Why digital money lenders should take advantage of FCCPC’s interim guidelines to obtain approval in Nigeria

Why digital money lenders should take advantage of FCCPC’s interim guidelines to obtain approval in Nigeria
Category: Regulatory Compliance
Date: June 7, 2023
Author: Pamela Victor-Ibitamuno

by Pamela Victor-Ibitamuno


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:

  1. Sycamore Integrated Solutions Limited
  2. Trade Depot
  3. Tajow Investment
  4. Blue Ridge Microfinance Bank Limited
  5. Grolatech Credit Limited
  6. Branch International Financial Services Limited
  7. P2vest Technology Limited
  8. Creditwave Finance Limited
  9. Keenest Tech Service Limited
  10. Fairmoney Micro Finance Limited
  11. Altracred Finance Investment Limited
  12. Crevance Credit Limited
  13. Menacred Company Limited
  14. Afrowide Development Limited
  15. Red Planet Nigeria Limited
  16. Afrofirst mobile and technology company limited
  17. Rankcapital Limited
  18. Ibs Global Investment Company Limited
  19. Lendvisery Services Limited
  20. Renmoney Microfinance Bank LImited
  21. Swipebill Technology Nigeria Limited
  22. Hometown Fintech Limited 
  23. Giasun Technology Nigeria Limited
  24. Be resources Limited
  25. Rockit Lenders Nigeria Limited
  26. Pivo Technology Limited
  27. Yes Credit Company Limited
  28. Irorun Technologies Limited
  29. Csense Limited
  30. Supreme Help Cooperative Society Limited
  31. Orcom and Orcom Business Support Limited
  32. Payhippo Limited
  33. Easycheck Finance Investment Limited
  34. Quark Financial Nigeria Limited
  35. Edmond Solutions Company Limited
  36. Ted Rocket Limited
  37. Penaid Limited
  38. Arve Limited
  39. Dover Credit Limited
  40. Ragekay Global Investment Limited
  41. Maywood Lending Limited
  42. Linkepark Technology Nigeria Limited
  43. Mangnet Lending Limited
  44. Rubystar Global Limited
  45. Bestfin Nigeria Limited
  46. Fubri Century Company Limited
  47. Berly Spring Global Limited
  48. Rock Financial Limited
  49. Phoenix Payment Solution Limited
  50. Value Driver Technology Solution Limited
  51. Nextpayday Limited
  52. Blackcopper Service Limited
  53. Trafalgar Associate Limited
  54. Windville Financial Nigeria Limited
  55. Orange Loan & Purple Credit Limited
  56. Carbon Microfinance Bank Limited
  57. Neo-link Technology Company Limited
  58. Finnew Fintech Limited
  59. Otp Internet Technology Limited
  60. Red Harbor Fintech Limited
  61. Paylater Hub Limited
  62. Skitloan Nigeria Limited
  63. Raceova Nigeria Limited
  64. New Credage Nigeria Limited
  65. Betterlending Company Limited
  66. Fast-point Integrated Limited
  67. Apex Lending Limited
  68. Piska Tech Nigeria Limited
  69. Princep Credit System Limited
  70. Omalend Service Limited
  71. Pockful Finance Limited 
  72. Highcredit Nigeria Limited
  73. Hollandale Nigeria Limited
  74. Pay Financial Technology Service Limited
  75. Al Capital Solution Limited
  76. Newedge Finance Limited
  77. Papichou Technology Limited
  78. Goharvest International Limited
  79. Mino sparks Limited
  80. Xgo Finance Limited
  81. Primera Microfinance Bank 
  82. Credit Tech Lending Company
  83. Prosperity Archipelago Limited
  84. Finesest Limited
  85. Singularity Technology Nigeria Ltd
  86. Econ Mart Fintech Limited
  87. Pennee Technologies Limited
  88. Oxymon Solution Limited
  89. Lantan Technology Limited
  90. Applink Capital Nigeria Limited
  91. Yegon Tech Limited
  92. Fezotech Nigeria Limited
  93. Eric Vsta Limited
  94. Moblaspay Company Limited
  95. Paycredit Limited
  96. Niz Services Limited
  97. Mino Sparks Limited
  98. Flo Wood Lending
  99. Liberty Assurance Limited
  100. Uni Technology Nigeria Ltd
  101. Trade Lenda Com Limited 
  102. Creditville Microfinance Bank 
  103. Letshego Microfinance Bank
  104. Kiowope Capital Limited
  105. Veendhq Limited
  106. Ucplus Advance Limited
  107. Maven Finance Limited
  108. Aella Financial Solutions Limited
  109. Fluna Capital Limited
  110. Newedge Finance Limited
  111. Ta Prime Limited
  112. Regxta Global Service Ltd
  113. Provest Limited
  114. Jm Rubinus Limited
  115. Crossroads e-payment systems Limited
  116. Consynergy Limited
  117. Fintered Innovation Limited
  118. Afrosay Fintech Limited
  119. Mim Finance Bank

Conditionally Approved

The loan apps that obtained conditional approval from the FCCPC are:

  1. Tripodbase Limited
  2. Owoafara Fintech Service
  3. Ajax Lending Limited
  4. The Platform Digital Network Limited
  5. Zippy Capital Limited
  6. Lending Edge Limited
  7. Lendha Technologies Limited
  8. Doja Lemaire Global Limited
  9. Paydayhub Online Nigeria Limited
  10. Retail Booster Limited
  11. Citadele Capitals Limited
  12. Fewchore Finance Company Limited
  13. One Payout Limited
  14. Lidya Global Limited 
  15. Kwaba International Limited
  16. Finpadi Technologies Limited
  17. Umba Digital Solutions Limited
  18.  Fintrade solutions limited
  19. U Technology
  20. Stellar Finance Limited 
  21. Dash Innovations 
  22. Grit-Tech Limited
  23. Caelim Technologies Limited
  24. U Thinking Nigeria Limited
  25. Eaton Hill Investment Limited
  26. Creditpro Business Support Services Ltd
  27. Muska Tech Limited
  28. Helppo Africa Limited
  29. Renners Africa Limited
  30. Pebble Financial Tech Limited
  31. Kiakia Bits Limited
  32. Wealthbridge Capital Partners Limited
  33. Trivista Capital Limited
  34. Atimi Lending Ltd
  35. Zuvy Technologies Limited 
  36. Rockshield Microfinance
  37. Dot Microfinance Bank Limited
  38. Allawee Technologies Limited
  39. Lucred Technology Limited 
  40. Nolt Finance Limited
  41. Soko Lending Limited
  42. Citygate Global Investment Limited
  43. Olivermead Investment Limited
  44. Lighting Finance Technology Nigeria Limited
  45. Memo Finance Limited
  46. Hoil Investment Limited
  47. Kiredi Rock Company Ltd
  48. Glosh Tech Limited
  49. Clemo Fresh Co. Ltd
  50. Passeco Technology Nig, Ltd
  51. Trust Cen Limited
  52. Riverbank Partners Limited
  53. Prime Avis Investment Services Limited
  54. 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.

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