Afrigather The Federal Competitors and Client Safety Fee (FCCPC) has authorised 173 digital lenders to function in Nigeria, a rise from the 106 gamers that the fee introduced earlier in January. The complete list contains 119 lenders who’ve obtained full approval and about 54 lenders who obtained “conditional approval.”
The FCCPC is updating the record because it continues to confirm the digital lenders via its regulatory framework dubbed the “Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022.[pdf]” This framework was launched in August 2022, amid sanctions and calls to Nigerian fintechs to block predatory digital lenders. Following the announcement, digital lenders got a 90-day ultimatum to register for approval, which was later extended to January thirty first, 2023.
FCCPC describes its present regulatory framework because the ”first and interim step to establishing a transparent regulatory framework.” However regardless of the short-term nature of the framework, world tech behemoth Google is taking the FCCPC’s approval as a regulatory seal to determine which digital lending apps stay on its Play Retailer platform—a transfer the FCCPC CEO, Babatunde Irukera, is happy about.
“Google has been very supportive, together with offering their knowledgeable information and expertise in advising about what works greatest in attaining laudable regulatory aims,” he mentioned.
Google is enjoying the pseudo-regulator position as it really works with Nigeria’s FCCPC and Kenya’s apex financial institution to implement compliance in Africa’s digital lending area. In Kenya, Google reportedly took down tons of of unlicenced mortgage apps from the Play Retailer final month, regardless of trade cries that the CBK’s licence is difficult to obtain.
A few of the FCCPC’s accredited mortgage apps embrace Sycamore, Commerce Depot, Department, Fairmoney, Pivo, PayHippo, BlackCopper, and Commerce Lenda
Earlier in February, the Nigeria Knowledge Safety Bureau (NDPB) revealed {that a} nationwide committee made up of federal companies was working to restrict the actions of unlawful credit score suppliers within the nation. This transfer will additional tighten the regulatory atmosphere for the lenders.
The digital lending markets in Nigeria and Kenya are the continent’s largest. These lenders present the much-needed money that powers the day by day life-style of mass populations in Africa. However the place regulators sleep, unhealthy actors reign, and the folks endure. Now, the FCCPC and the CBK are collectively elevating the usual for digital lenders in Africa. Maybe, this may very well be the daybreak of a saner microlending trade throughout the continent.
