The variety of corporations formally registered as digital lenders, popularly often known as mortgage apps, has surged up to now months, reaching a complete of 492 in October as extra corporations registered to flee N100 million superb.
This comes because the Federal Competitors and Shopper Safety Fee (FCCPC) implements a brand new rule focused in any respect digital lenders within the nation.
Underneath the Digital, Digital, On-line, or Non-Conventional Shopper Lending Laws, 2025, which got here into impact on July 21, 2025, all digital lenders working within the nation should register with the FCCPC inside 90 days of graduation.
In accordance with the Fee, non-compliant operators face sanctions, which can embrace fines of as much as N100 million or 19% of turnover, in addition to potential disqualification of administrators for as much as 5 years.
Lenders rush to register
As of Might this 12 months, the variety of registered digital lenders, together with these licensed by the Central Bank of Nigeria (CBN), stood at 425, in keeping with FCCPC’s information.
This means that 67 corporations had approached the business watchdog for registration within the final 4 to 5 months.
- FCCPC’s database reveals that out of the 492 registered corporations, 434 of them have been given full approval by the Fee, whereas 36 of them have secured conditional approval from the Fee.
- The remaining 22 are these licensed by the CBN. CBN-licensed lenders are exempted from FCCPC registration however the Fee nonetheless retains a tab on them.
- Regardless of the massive variety of registered lenders, the Fee mentioned 103 different mortgage corporations have been positioned below its watchlist for regulatory actions.
The brand new laws: Why it issues
In accordance with the Govt Vice Chairman/Chief Govt Officer, Mr. Tunji Bello, the brand new laws for digital lenders grew to become vital within the face of the rising unethical practices within the digital lending area.
“For too lengthy, Nigerians have endured harassment, information breaches, and unethical practices by unregulated digital lenders. These laws draw a transparent line that innovation is welcome, however not on the expense of the rights and dignity of shoppers, or the rule of regulation,” Bello said.
“These Laws present the authorized instruments to carry violators accountable and promote accountable digital finance. No client needs to be harassed, defamed, or lured into unsustainable debt below the guise of digital lending,” he added.
Key provisions of the 2025 lending laws
The Laws set up a sturdy authorized framework to register, monitor, and sanction all types of digital and non-traditional lending in Nigeria.
Relevant to all unsecured client lending carried out via digital, on-line, cellular, or different non-traditional means, the laws set out clear necessities for registration, transparency, information privateness, moral restoration, truthful rates of interest, and accountable lending.
- It prohibits pre-authorised or automated lending, compels clear and accessible mortgage phrases, bans unethical advertising and marketing, and mandates native possession of not less than one service supplier for airtime and information lending providers.
- It additionally requires joint registration of all lender partnerships and prohibits monopolistic or dominance-based agreements with out prior Fee approval.
- The brand new Laws additionally prohibit apps from accessing contact lists, footage, and transactions of their clients.
In accordance with the President of the Cash Lenders Affiliation (MLA), Mr. Gbemi Adelekan, some lenders have been misusing such entry to harass clients and interact in different unethical practices.
“It’s a very good step in the fitting course for the ecosystem,” he mentioned, including that this could power many lenders to begin utilizing the credit score bureau for debt restoration.
He additionally famous that the group helps the regulation that mandates lenders to obviously state the circumstances of their loans, together with tenor, rates of interest, and compensation plans.
Adelekan noticed that the variety of gamers within the digital lending area has been rising in current instances as a result of many retired bankers are transferring into the area to stay lively within the monetary system.
He famous that digital lending has additionally change into the selection for a lot of corporations due to the convenience of entry in contrast with different monetary providers like Microfinance banking, which requires rigorous licence processing.
What you need to know
The brand new regulation builds on the Restricted Interim Regulatory/Registration Framework and Tips for Digital Lending, 2022, which made it obligatory for all digital cash lenders within the nation to be registered.
- Regardless of the registration drive geared toward sanitizing the digital lending area, circumstances of harassment and defamation of debtors have remained rampant. Sanctions for such acts embrace delisting or elimination of apps from the Google Play Retailer.
- Nevertheless, with the brand new rule, the FCCPC goes harder on perpetrators of unethical practices within the digital lending market.
- The Fee maintains that it’s going to proceed to work with the CBN, Google, and different stakeholders to make sure full enforcement.
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