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18 new Loan companies have been approved in Nigeria

FCCPC has approved 18 new loan companies, making a total of 284 Loan companies currently operating in Nigeria as of May 2024.
18 Loan companies got approval in Nigeria

The Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN) have licensed and approved 18 new fintech companies to provide loan services via apps to Nigerians. This information was disclosed in FCCPC's updated list of approved Digital Lenders.

The Federal Competition and Consumer Protection Commission (FCCPC) is the government agency responsible for maintaining and regulating set of approved digital lenders in Nigeria. These Lenders are regularly regulated and their list is updated to reflect changes in the lending landscape. The most recent update categorizes approved lenders in three tiers.

The first tier includes 232 companies that have received full approval from the FCCPC to operate as digital lenders. These companies have met all regulatory requirements and can offer loan products freely within the Nigerian market. The second tier consists of 41 loan apps with conditional approval. These lenders have been granted temporary approval while they address specific requirements for full FCCPC authorization.

The third tier list includes 11 companies licensed by the Central Bank of Nigeria (CBN) to operate loan apps. These CBN-licensed lenders operate alongside the FCCPC-approved companies, bringing the total number of approved digital lenders in Nigeria to 284.

In a nutshell, top loan companies in Nigeria are been given full approval License, conditional approval License and CBN-Licensed approval.

With that being said, it's also noteworthy that the Nigerian lending landscape is booming with a growing number of approved digital lenders, resulting to a rise in loan apps offering instant loans to the needy. This surge might be partly due to some approved lenders operating multiple loan apps, maximizing their reach in the market.

For instance, approved lender Acetech Finance offers loans through eight apps like Kashout and Flashcredit, while CBN-licensed Newedge Finance operates Palm Credit, EasyBuy, New Credit, and several others. Another typical example of fintech that offers instant and quick loans via multiple app is BlueRidge Microfinance Bank (MFB). The company offers Loan and Credit services through it popular Loan apps OKash and EaseMoni.

However, people are concerning that despite ongoing struggles to regulate the Nigeria existing digital lending market, the FCCPC is still approving a growing number of lenders. Experts point to this very proliferation as a reason for the FCCPC's difficulties, arguing it creates a complex landscape. The FCCPC, however, appears to be placing its hope on the recently introduced government consumer credit scheme to curb predatory lending practices popularly known as Loan Sharks.

In an interview with the News Agency of Nigeria (NAN) on Sunday, May 26, 2024, Adamu Abdullahi, the Acting Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), emphasized the benefits of the federal government's new consumer credit scheme. He noted that the initiative aims to reduce the reliance on unregistered loan applications, which often harm the reputations of users. 

Abdullahi highlighted that the 2024 federal budget has allocated ₦100 billion to the consumer credit scheme, designed to provide Nigerians with access to collateral-free soft loans. This financial provision aims to ease the borrowing process for citizens, offering them a safer and more regulated alternative to informal lending options.

The administration of President Bola Tinubu took a significant step in April 2024 by launching the first phase of the consumer credit scheme, initially focusing on civil servants. To facilitate access, the Nigeria Consumer Credit Corporation (CREDICORP) has set up a portal where Nigerians can register their interest in obtaining consumer credit, thus streamlining the application process and broadening the reach of this financial assistance program.

In addition to this, the President Tinubu's Administration has opened the NELFUND's student loan portal, encouraging all higher institutions' students in Nigeria to apply if their are financially challenged. You can learn more about the NELFUND Student Loan here and how you can create a profile in the portal and apply for the Student Loan.

In another recent development, the FCCPC, in partnership with ECOWAS Regional Competition Authority, is conducting a market study on Nigeria's digital market sector. This initiative is aimed at helping Nigerians sharping their digital market future.

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With five years experience in Media, Temmy Samuel's become a modern journalist, delivering impressive reporting about tech, finance, business and science around the world. More About Temmy

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