FCCPC Resumes its Digital Money Lender Registration Process 

By Nicola Taljaard 

On 26 June 2023, the Federal Competition and Consumer Protection Commission (“FCCPC”) announced the resumption of registration of Digital Money Lenders (“DMLs”) under the Joint Regulatory and Enforcement Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022 (“Guidelines”).

In a statement signed by CEO and Executive Vice-Chairman Babatunde Irukera, the FCCPC stated that the decision to resume registration was in response to requests from both existing platforms that missed the earlier registration deadline set by the FCCPC and new businesses planning to enter the market. He explained that as part of the Joint Regulatory and Enforcement Task Force (“JRETF”), the FCCPC introduced the Guidelines to protect consumers’ rights and ensure responsible practices by digital money lenders, particularly in light of the increasing number of loan sharks and the like flooding Nigeria’s digital money market. The associated registration process/platform was also established.

The Guidelines initially required completion of the registration process by November 14, 2022, to continue operations and enjoy privileges such as access to Google Playstore and payment systems/gateways. The FCCPC, however, extended the deadline to January 31, 2023, and subsequently to March 27 of the same year.

Irukera further noted that, while the JRETF continues to work toward developing a more comprehensive and durable digital lending regulatory framework, the FCCPC remains inundated with applications for registration and thus, it will resume in accepting and approving eligible DML applications, from both businesses those that previously failed to register themselves on the basis of the initial Guidelines as well as new businesses seeking to enter the market. 

Nevertheless, Irukera cautioned that businesses that were removed from Google Playstore or halted transaction processing would only be registered after providing a statement that justifies their failure to complete the registration before the previous deadline. In addition,any late applications would be subjected to a late processing fee. 

Says Andreas Stargard, a partner with Primerio Ltd.: “This development shows that the FCCPC is not only a capable and multi-faceted (albeit young) agency, but also that it is highly attuned and quick to adapt to — in real life, and with real action taken — some of the digital-markets issues that seem to be the du jour topic of antitrust in 2023.” It shows the FCCPC’s commitment to continuously monitor the digital market and safeguard the rights of consumers against privacy violations, harassment, unconventional loan repayment strategies, and disclosed charges associated with loans.”

For the full list of DMLs that have received conditional and full approval, see here: https://fccpc.gov.ng/registration-status-for-digital-money-lenders-apps/