Nigerian Government Delists Illegal Loan Apps

The apps include Getloan, Camelloan, Cashlawn, Nairaloan, Eaglecash, Moneytreefinance Made Easy, Luckyloan Personal Loan, Joy Cash-Loan, Cashme, Easynaira, Swiftcash, Crediting, Swiftkash, Hen Credit loan; Nut loan; Cash door; Cashpal, and Nairaeasy gist loan.

The aforementioned businesses, despite being registered, will stop operating, according to the FCCPC, unless they can demonstrate conformity with the 2022 interim regulatory/registration framework and rules for digital lending. Therefore, the commission granted the DMLs five days to provide evidence.

In order to prevent unethical acts, the commission revised its list of registered and approved DMLs on July 20, 2023, according to TheCable, a Nigerian newspaper, that reported this new development.

This was brought on by some operators’ revival in the use of illegal debt recovery techniques and tactics. “The commission entered an order to Google LLC (Google) to remove the same from the Play Store, and prohibited payment gateways or services from providing or continuing services to the affected businesses,” the statement reads. “The commission, as part of its continuing investigation and audit, has identified additional apps operating on the Google Play Store without regulatory approval or in violation of the guidelines. As a result, the FCCPC said it asked Google to immediately remove, withdraw, or drawdown” the aforementioned apps.”

“The commission will continue engaging Google to clarify how and why apps that have not received relevant regulatory approvals are available on Google’s platform (Play Store),” the consumer agency said. Under the guidelines, only DMLs that have been subjected to regulatory scrutiny and compliance evidenced by written approval from the commission are allowed on Play Store.”

The FCCPC claimed that some DMLS have turned to the usage of Android package kits (APK) file formats to reach customers outside of Google’s Play Store when discussing compliance further.

According to the commission, certain DMLs may be using this as a means of avoiding or avoiding regulatory compliance. “Compliance with the guidelines is mandatory for all DMLs regardless of whether they intend to be placed on Play Store, operate by APK file formats or any other means for that matter,” FCCPC said.

“Failure to comply with the guidelines is a violation of law and renders any such operation illegal. DMLs operating by any means or on any platforms whatsoever are, hereby, required to provide evidence of compliance with the guidelines within five days from the date of this release,” FCCPC added.

In addition to Play Store, all currently operating and approved DMLs that offer digital lending services using APK file formats were encouraged by the consumer organization to show proof that their APK business operations are legal. Companies that disobey the rule would be permanently delisted, banned, and subject to law enforcement action, including prosecution, according to the commission.