FCCPC clears 48 additional loan apps, approved digital lenders now 505

The Federal Competition and Consumer Protection Commission (FCCPC) has granted full operational approval to 48 digital lending companies previously placed on conditional approval, bringing the total number of fully licensed loan app operators in Nigeria to 505.

The latest update, published on the Commission’s register of approved digital money lenders, marks a significant milestone in the regulator’s efforts to sanitise Nigeria’s fast-growing digital lending industry and curb widespread consumer abuse associated with unregulated loan apps.

With the new approvals, all companies that had been operating under conditional approval have now secured full registration, having met the FCCPC’s regulatory requirements. Among the key obligations imposed on the lenders are compliance with ethical debt recovery practices, replacing the harassment, intimidation and defamation tactics that had become synonymous with many loan sharks operating in the country.

The updated register also shows that 32 additional digital lenders have been granted registration waivers because they are already licensed and supervised by the Central Bank of Nigeria (CBN).

Although only 505 companies have obtained full approval, the actual number of loan applications operating under the FCCPC’s oversight exceeds 1,000, as many of the registered firms manage multiple lending platforms.

The Commission also disclosed that 112 loan apps are currently on its watchlist for regulatory scrutiny, while 54 others have been removed from the Google Play Store for violating its consumer protection rules.

The sharp increase in the number of registered digital lenders follows the implementation of the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, which made registration compulsory for all digital lenders operating in Nigeria.

The new framework expands regulatory oversight beyond app-based lenders to include digital and non-traditional consumer lending platforms, strengthening the FCCPC’s authority to monitor the industry and enforce compliance.

Industry analysts say the growing number of licensed operators reflects the rapid expansion of Nigeria’s consumer credit market but also raises concerns over the Commission’s capacity to effectively supervise the sector as it continues to grow.

A Lagos-based financial analyst, Adewale Adeoye, said while the FCCPC deserves credit for tightening regulations in the digital lending space, the scale of enforcement required could prove challenging.

According to him, monitoring more than 500 licensed companies, in addition to hundreds of illegal operators, would require significant institutional capacity.

“The FCCPC’s mandate extends beyond digital lending to consumer protection across virtually every sector of the economy. Supervising this rapidly expanding market alone is a huge responsibility,” Adeoye said.

He added that the 2025 regulations have further widened the Commission’s oversight by covering lenders that do not necessarily operate through mobile applications, increasing the scope of enforcement.

The President of the Money Lenders Association (MLA), Gbemi Adelekan, also acknowledged that policing the industry would be demanding given the large number of operators.

However, he expressed confidence in the Commission’s ability to manage the sector, noting that the FCCPC had consistently responded swiftly to industry concerns and assured stakeholders that it possesses the necessary capacity for effective oversight.

The current regulatory regime builds on the Limited Interim Regulatory and Registration Framework for Digital Lending introduced in 2022, which first made registration mandatory for digital money lenders.

Despite those earlier reforms, complaints of harassment, public shaming and defamation of borrowers persisted, with many erring lenders circumventing sanctions by abandoning the Google Play Store and distributing their applications through Android Package Kits (APK).

Under the 2025 regulations, however, the penalties have become significantly stiffer. Non-compliant digital lenders now face fines of up to N100 million or 10 per cent of annual turnover, whichever is applicable under the regulations, while company directors may also be disqualified from holding office for up to five years for serious violations.

The tougher sanctions are expected to strengthen consumer protection and promote greater accountability as the digital lending industry continues its rapid expansion.