FG Plans New Regulation For Opay, Palmpay, Moniepoint, Others

• The Nigerian government has said it will tighten regulation on the digital lending space in 2024
• The Federal Competition and Consumer Protection Commission (FCCPC) said the new law will improve consumer lending and loan recovery
• The FCCPC Chairman revealed that the incidents of harassment in the industry have reduced by 80%

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The Nigerian government, via the Federal Competition and Consumer Protection Commission (FCCPC), is set to issue more regulation for digital lending in 2024.

The regulations will improve loan recovery methods in Nigeria amid rising debtor defaults.

FCCPC reduces harassment by loan apps by 80%

Babatunde Irukera, the Chief Executive Officer of FCCPC, disclosed this on a TV programme.

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Punch reports that Irukera said while the FCCPC has reduced the incidents of harassment in the industry, there is still a high level of default from Nigerians.

According to him, there is a significant level of loan defaults because people must refrain from using unethical and inappropriate loan recovery mechanisms.

He stated that the loan apps should find other alternatives to loan recovery rather than embarking on harassment and intimidation.

He said:

“We must necessarily do the work no matter how hard it is to find a more sensible way to recover loans because I also agree that if these digital money lenders are unable to recover their loans and drop out of the market, it is a consumer protection problem because of those who need those types of short-term unsecured lending.

The commission offers lessons to other countries

Recently, the commission revealed that it had reduced harassment and defamatory messages in the industry by 80%. Irukera noted in the past that the country is one of many struggling with digital lending.

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According to the FCCPC boss, India, Kenya, Brazil, Ghana, and Uganda are still grappling with digital lending, stating that some countries take lessons from the commission.

Full List of FCCPC, CBN-approved loan app companies, and their apps

Legit.ng reported that the Federal Competition and Consumer Protection Commission (FCCPC) has issued a new list of 154 companies granted full approval to operate loan apps in Nigeria.

Earlier, the FCCPC delisted the approved companies for ‘clean up.’ After adding apps each firm owns under its approval list, the newly released list is more detailed.

The list of the apps associated with the firms will let the customer identify the companies behind the apps they use and also reduce incidents of app duplicity by the companies.

Source: Legit.ng