By Milcah Tanimu
The number of **approved digital loan apps in Nigeria** has risen to 320 as of September 2024, up from 284 in May, reflecting a growing demand for quick loans due to the country’s economic challenges. This surge in digital lenders comes as more Nigerians turn to loan apps for financial relief, seeking instant credit for day-to-day expenses.
According to data from the Federal Competition and Consumer Protection Commission (FCCPC), 264 of these loan apps have been granted full approval, while 42 are operating with conditional approval. Additionally, 14 companies have been licensed by the Central Bank of Nigeria (CBN), marking a significant expansion in the digital lending space.
Industry experts attribute this increase to the relatively easy registration process for digital lending platforms compared to traditional financial institutions. The Chairman of the Money Lenders Association, Gbemi Adelekan, noted that many companies are entering the space due to lower regulatory barriers and the high demand for credit.
Loan applications have quadrupled this year, with digital lenders like QuickPay reporting between 5,000 and 6,000 weekly applications, up from 1,000 during the COVID-19 pandemic. However, many applicants are rejected due to poor credit history, with around 90% failing to qualify after BVN verification.
Despite the rise in registered loan apps, unregulated lenders continue to operate, often harassing borrowers. The FCCPC has placed 88 such apps on a watchlist and delisted 47 from the Google Play Store to curb illegal activities. The Commission’s Interim Regulatory Framework aims to ensure transparency and accountability in the digital lending sector.
