The Nigerian government through the Federal Competition and Consumer Protection Commission has given money lending platforms a deadline of five days to demonstrate their compliance, with the established guidelines. Additionally they have requested that Google remove 18 lenders from the Playstore due to their violations of these guidelines. The FCCPC emphasizes that adherence to their regulations is now compulsory and failure to do so constitutes an infringement.
The commission states that the 18 digital money lenders who have been delisted and flagged for removal by Google were either operating without approval or in violation of the Limited Interim Regulatory/Registration Framework and Guidelines, for Digital Lending, 2022. They emphasize that only digital money lenders who can provide written approval demonstrating scrutiny and compliance from the FCCPC will be permitted on the Playstore.
On July 20 2023 the FCCPC took action. Removed two loan apps, Getloan and Camelloan from the Google Play Store. The reason, behind this decision was their reported harassment of individuals.
During the investigation and tracking of these money lenders who were operating illegally the FCCPC uncovered deceitful practices by at least two lenders who were already registered with the commission.
In a statement Babatunde Irukera, the Executive Vice Chairman/Chief Executive Officer of FCCPC announced that an additional 16 loan firms have been delisted well. Furthermore Google has been requested to delete these apps from their platform.
According to Irukeras statement all digital money lenders operating through Playstore or any other means must adhere to the guidelines set by FCCPC.
The list of deleted apps provided by FCCPC includes; Getloan, Joy Cash Loan Up, to 1,000,000, Camelloan, Cashlawn, Nairaloan,
Eaglecash,
Moneytreefinance Made Easy
Luckyloan Personal Loan,
Cashme,
Easynaira,
Swiftcas,
Crediting,
Swiftkash
Hen Credit loan,
Nut loan,
Cash door,
Cashpal and Nairaeasy gist loan.
It was observed that certain online lenders were using Android Package Kits (APK) file formats to target customers outside of the Google Playstore potentially bypassing or evading requirements. The statement emphasized that all online lenders must comply with the guidelines regardless of their intention to be listed on the Playstore utilize APK files or employ any methods.
Regarding the decision to impose sanctions on apps that violate regulations Irukera emphasized that it is mandatory, for all Digital Money Lenders (DMLs) regardless of their intention to be on the Playstore or operate through APK file formats to comply with the guidelines. Failure to adhere to these guidelines is considered a violation of the law. Renders any such operation illegal.
Digital Money Lenders irrespective of their means or platforms are required to provide evidence of compliance within five days from the date of this announcement. Additionally existing and approved DMLs offering lending services through APK file formats alongside the Playstore must demonstrate that their APK operations align with requirements.
Irukera also highlighted that all approved digital money lenders must update their information with the commission for validation purposes. Failure to follow the guidelines may result in delisting and prohibition well as potential law enforcement actions, like prosecution.
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