FCCPC Approves 284 Loan Apps In Nigeria As Of May 2024

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As of May 2024, 284 loan app companies had received approval from the Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN).

 

As opposed to the 266 enterprises that were approved in March, this represents a rise. Companies having full and conditional approvals, as well as those licenced by the CBN, are included in the most recent list published by the FCCPC. To be precise, 41 organisations have conditional approval to operate as digital lenders, while 232 companies have complete approval.

 

Additionally, the FCCPC has listed 11 companies licensed by the CBN to offer loan apps, bringing the total to 284 approved digital lenders in Nigeria.

 

The number of loan apps available has grown along with the increase in approved lenders. Many approved companies operate multiple loan apps, providing various instant loan services to Nigerians.

 

For example, Acetech Finance Limited, an approved lender, operates eight different loan apps, including Kashout, Flashcredit, and Rapidloans. Similarly, Newedge Finance Limited, licensed by the CBN, runs several apps such as Palm Credit and Easybuy.

 

Despite the rise in approved lenders, the FCCPC faces challenges in regulating unethical practices by some digital lenders, including harassment of borrowers.

 

To tackle this, the FCCPC supports a new consumer credit scheme introduced by the Federal Government. This scheme aims to provide Nigerians with collateral-free loans, helping to curb the excesses of predatory loan apps.

 

Acting Executive Vice Chairman of the FCCPC, Adamu Abdullahi, explained that the scheme is designed to offer loans from recognized institutions and banks, reducing the need for unregistered loan apps.

 

The credit scheme, part of President Bola Tinubu’s Renewed Hope Agenda, launched its first phase in April 2024, targeting civil servants as initial beneficiaries.

 

The Nigeria Consumer Credit Corporation (CREDICORP), a federal entity, has also launched a portal for Nigerians to apply for consumer credit. The goal is to extend credit availability to 50 percent of Nigeria’s working population by 2030.

 

In the 2024 budget, the Federal Government allocated N100 Billion to support the rollout of this consumer credit scheme.

 

The introduction of this scheme is expected to fill the gap in loan availability, encouraging loan companies to improve their practices or exit the market altogether.

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