₦100M Fine Drives Hundreds of Nigerian Loan Apps to Comply with Regulations
Nigeria’s digital lending landscape is undergoing a significant shift as stricter regulations from the Federal Competition and Consumer Protection Commission (FCCPC) are pushing loan apps towards compliance. A hefty ₦100 million fine, or 19% of annual turnover (whichever is higher), imposed on unregistered digital lenders has spurred a surge in registration, bringing the total number of legally operating loan apps in the country to 492.
Cleaning Up the Digital Lending Space
The FCCPC’s move, which took effect on July 21, 2025, aims to address the widespread unethical practices prevalent in the digital lending sector. These practices have included harassment of borrowers, unsolicited contact spamming, and the misuse of borrowers’ personal data. The regulatory action is intended to establish a fairer and safer environment for both borrowers and legitimate lending businesses operating within Nigeria. As a result of the increased scrutiny, 434 companies have now received full approval, while 36 are operating under conditional approval, and 22 are still under scrutiny.
This regulatory push signifies a crucial step towards sanitizing Nigeria’s digital lending industry, fostering greater transparency, and protecting consumers from predatory lending practices. The FCCPC’s enforcement action is expected to instill confidence in the digital lending ecosystem, encouraging responsible lending and borrowing practices across the board.
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