More Loan Apps Register Under FCCPC to Avoid N100m Sanctions

By Adedapo Adesanya

There has been an increase in the number of companies officially registered as digital lenders, popularly known as loan apps, reaching a total of 492 in October.

This comes as more digital lenders seek to escape the N100 million fine implemented by the Federal Competition and Consumer Protection Commission (FCCPC).

Recall that under the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which came into effect on July 21, 2025, all digital lenders operating in the country must register with the FCCPC within 90 days of commencement.

The commission warned that Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders.

According to the Commission, non-compliant operators face sanctions, which may include fines of up to N100 million or 19 per cent of turnover, as well as potential disqualification of directors for up to five years.

In the last five months, an addition 67 companies have registered, compared to 425 as of May, as per data from the FCCPC.

FCCPC’s database shows that out of the 492 registered companies, 434 of them have been given full approval by the commission, while 36 of them have secured conditional approval from the Commission.

The remaining 22 are those licensed by the Central Bank of Nigeria (CBN) including Fairmoney, Branch, among others. This limits the FCCPC’s control over their activities, but it still keeps tabs on their operations.

The regulator also noted that 103 other loan companies have been placed under its watchlist for regulatory actions.

The new lending regulations establish a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.

It prohibits pre-authorised or automatic lending, compels clear and accessible loan terms, bans unethical marketing, and mandates local ownership of at least one service provider for airtime and data lending services.

It also requires joint registration of all lender partnerships and prohibits monopolistic or dominance-based agreements without prior Commission approval.

The new regulations also prohibit apps from accessing contact lists, pictures, and transactions of their customers.

The commission maintains that it will continue to work with the CBN, Google, and other stakeholders to ensure full enforcement.