Federal Government Takes Swift Action Against Illegal Loan Apps in Nigeria, Delists Two from Google Play Store

In a decisive move to protect Nigerian consumers from the harassment and abuse perpetrated by unscrupulous digital money lenders, the Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), has embarked on a comprehensive crackdown. The FCCPC recently announced its intention to release a comprehensive list of illegal (unregistered) digital loan apps operating in Nigeria. This list aims to raise awareness among citizens and empower them to make informed decisions while seeking financial assistance through digital platforms.

The FCCPC’s watchful eye extends beyond unregistered loan apps. The commission has also diligently added digital money lenders that have either refused or neglected to register under its guidelines to its watchlist. Such lenders will be subject to strict surveillance, and necessary actions will be taken against them to protect consumers’ interests.

Babatunde Irukera, the Executive Vice Chairman/Chief Executive Officer of the FCCPC, emphasized the commission’s commitment to enforcing regulatory compliance among digital money lenders. He asserted that only businesses that consistently adhere to the spirit and intentions of the regulatory framework will be allowed to operate legally in Nigeria. This will ensure that consumers’ rights and welfare are safeguarded.

To facilitate informed borrowing decisions, the FCCPC plans to make the list of approved digital money lenders available on its official website. This will enable Nigerians to verify the legitimacy of loan apps before proceeding with financial transactions, reducing the risk of falling victim to illegal and prohibited lending and recovery practices.

In a noteworthy development, the FCCPC has permanently delisted two digital money lenders from the Google Play Store. Sycamore Integrated Solutions Limited, Orange Loan, Purple Credit Limited, along with their respective apps “Getloan” and “Camelloan,” were removed from the platform due to their involvement in dubious activities. The decision followed a thorough investigation by the commission, which revealed duplicity and the use of APK to attract borrowers into illegal and unregulated processes.

As part of its efforts to foster a safe lending environment, the FCCPC has already registered and approved about 180 loan apps in Nigeria. This ensures that users can access reliable financial services from authorized platforms without fear of exploitation.

The FCCPC’s resolute actions underscore the government’s commitment to protect consumers from unscrupulous financial practices in the digital space. By promoting transparency and accountability among digital money lenders, Nigerian authorities aim to build a robust and consumer-friendly financial ecosystem that empowers citizens while fostering economic growth.