The number of registered and approved digital money lending platforms, otherwise known as loan apps in the country is now 211, NewsSpecng learnt.
These are the numbers that have received provisional nod from the Federal Competition and Consumer Protection Commission (FCCPC) to operate in the country as at the end of October.
The 211 companies comprise 172 that have received full approval from the Commission and 39 others with conditional approval.
As of September this year, the total number of companies that had been fully approved stood at 161, while those with conditional approvals were 40.
The increase indicates that new companies are coming up to secure FCCPC’s approval for the digital lending business amid the battered image of the business over incidences of harassment and defamation of borrowers by some of the lenders.
The resumption of registration of digital money lending apps by the FCCPC after the March 27, 2023 deadline, is also paving the way for more companies to enter the market.
According to the Commission, it came up with the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, in collaboration with the Joint Task Force (JTF) to promote fair, transparent, and beneficial alternative lending opportunities for Nigerians.
The registration was also necessitated by the disturbing activities of loan apps in the country, especially the illegal ones, over allegations of rights violations, and unfair practices, among others.
Some of the loan apps charge interest rates that violate the ethics of how lending is done and are involved in naming and shaming which is a violation of people’s privacy with respect to how these lenders recover loans, among other violations.