By Daniel Edu
The Federal Government, acting through the Federal Competition and Consumer Protection Commission (FCCPC), has taken decisive steps to address the issue of illegal loan apps operating within its jurisdiction. The FCCPC has given digital money lenders a strict ultimatum of five days to demonstrate that they are operating in compliance with the government’s set guidelines.
Furthermore, the FCCPC has called upon Google to remove 18 digital lenders from its Playstore due to their violations of the established guidelines. The commission emphasizes that adherence to these guidelines is now mandatory, and any failure to comply will be deemed a violation of the law.
The 18 delisted digital money lenders were found to be operating without the necessary regulatory approval or were in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, which was established in 2022.
To be eligible for inclusion on Google Playstore, digital money lenders must have regulatory scrutiny and provide written approval from the FCCPC. This move aims to protect consumers from predatory practices and ensure that only reputable lenders operate in the digital lending space.
The FCCPC previously removed two loan apps, Getloan and Camelloan, from Google Play Store for harassing Nigerian borrowers. During their investigation, they uncovered duplicity by at least two legally registered digital money lenders, prompting the removal of an additional 16 loan firms from the platform.
The Executive Vice Chairman/Chief Executive Officer of the FCCPC, Babatunde Irukera, reaffirmed the importance of complying with the guidelines, regardless of the platform or means of operation used by digital money lenders. Even those reaching consumers through Android Package Kits file formats outside of Google Playstore must adhere to the set regulations.
Failure to comply with the guidelines will result in severe consequences, including permanent delisting, prohibition, and potential law enforcement actions, including prosecution. All existing and approved digital money lenders, regardless of their current status, must revalidate their information with the commission to ensure compliance.
In response to these recent actions, all digital money lenders operating in Nigeria must promptly provide evidence of their adherence to the guidelines within the designated five-day period. The government aims to protect consumers from unscrupulous lending practices while fostering a healthy and transparent digital lending environment in the country.
