Federal Competition and Consumer Protection Commission (FCCPC) has delisted 47 unregistered loan apps on Google playstore as at May 2024, in a renewed crackdown on such platforms.
This is coming after it was discovered that despite the efforts of the agency, the proliferation of unregistered loan apps continues, with many operating through Android Package Kit (APK) files, circumventing official app store regulations.
According to a statement from the FCCPC, as of May 2024, the number of registered loan apps in Nigeria has risen to 284, comprising 232 companies with full approval and 11 others licensed by the Central Bank of Nigeria (CBN).
It also noted that it has placed 88 others on a watchlist amid a surge in the number of unregistered and potentially predatory loan apps, which have been causing considerable distress among Nigerians.
Despite these advancements, the ongoing challenges posed by unregistered apps continue to impact Nigerian borrowers adversely.
Dr. Adams Abdullahi, chief executive officer, FCCPC, said infractions have been on the rise as more Nigerians are now taking loans from the various loan apps.
Despite these advancements, the ongoing challenges posed by unregistered apps continue to impact Nigerian borrowers adversely.
Abdullahi said the commission would now involve law enforcement agents in tackling the menace in addition to regulatory prohibition and consequences.
He noted that this is in line with the FCCPC’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, established in 2022, which is aimed at promoting ethical lending practices and protect consumer rights.
The situation, according to financial analysts, underscores the need for stronger regulatory frameworks and consumer protection measures in Nigeria’s digital finance sector.
According to them, the gloomy state of the Nigerian economy has led to the rise of loans taken by its citizens.
