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Approved Loan App Companies in Nigeria Rise to 284 in May 2024

The number of approved loan app companies in Nigeria has grown to 284 as of May 2024, according to the Federal Competition and Consumer Protection Commission (FCCPC). This is an increase from 266 companies in March 2024.

 

The FCCPC’s updated list includes companies with full approval, conditional approval, and those licensed by the Central Bank of Nigeria (CBN). Of these, 232 companies have full approval to operate as digital lenders, while 41 have conditional approval. Additionally, 11 companies are licensed by the CBN to operate loan apps.

 

**Increase in Loan Apps**

 

The rise in approved digital lenders has led to a surge in loan apps offering instant loans in Nigeria. Many approved lenders operate multiple loan apps. For example, Acetech Finance Limited operates eight different loan apps, including Kashout and Flashcredit. Newedge Finance Limited, licensed by the CBN, operates Palm Credit and Easybuy, among others.

 

Despite the increase in approvals, the FCCPC is struggling to control the unethical practices of some digital lenders, such as harassment and defamation of borrowers. The large number of apps makes regulation challenging.

 

**Government’s Credit Scheme**

 

The FCCPC hopes that a new consumer credit scheme introduced by the Federal Government will help curb these issues. Acting Executive Vice Chairman of the FCCPC, Adamu Abdullahi, said the scheme aims to provide Nigerians with access to collateral-free soft loans, reducing reliance on unregistered loan apps.

 

This credit scheme, launched in April 2024, is currently available to government workers. It is part of President Bola Tinubu’s Renewed Hope Agenda and is expected to address the gap filled by loan apps. The Nigeria Consumer Credit Corporation (CREDICORP) has also launched a portal for Nigerians to apply for consumer credit, aiming to increase credit availability to 50% of the working population by 2030. The 2024 budget allocated N100 billion for the scheme’s launch.

 

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