Nigeria’s digital lending sector faces a structural shake-up as the Federal Competition and Consumer Protection Commission (FCCPC) moves to restrict operators to a maximum of five lending applications.
The new guidelines, which form part of the Commission’s broader effort to sanitise the digital credit space, come with a firm compliance deadline of January 5, setting the stage for significant consolidation among lenders that currently operate far beyond the new cap.
Currently, some of the approved digital lenders operate six to eight apps, often using multiple brand identities to widen market reach or evade regulatory scrutiny.
This has complicated oversight, especially in cases involving consumer data misuse, harassment in loan recovery, and opaque pricing.
“For the avoidance of doubt, where the applicants are in a joint venture for the provision of Consumer Lending Services, the aggregate number of Lending Applications to be used or controlled by the joint venture shall not exceed five (5), and in any case, each member of the joint venture shall not, nor shall it be permitted, to independently register, use, operate or control consumer lending apps or software for the provision of Consumer Lending Services unless and until the termination of the joint venture,” the Commission said in the guidelines just released as a follow up to its Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025 released in July.
By setting this threshold, the Commission aims to reduce fragmentation in the market, ensure clearer accountability, and stop lenders from spreading their operations across numerous small platforms that are difficult to track.
Financial implications of app registration
The guideline also redefines how lenders pay for app approvals. The standard approval fee under Regulation 15(2)(a) and (b) covers registration of up to two lending applications.
For lenders seeking to register more than two apps, up to the limit of five, there is an additional fee of N500,000 per extra application.
This structure creates a financial disincentive for operators that historically relied on volume, encouraging them instead to streamline operations and invest in compliance, customer support, and responsible lending systems.
- As part of licence renewal, digital lenders must now provide full disclosure of every app used in delivering consumer lending services.
- The FCCPC said failure to declare any active or intended lending application can result in denial of approval.
- Where an approval has already been granted, undisclosed apps may lead to licence revocation or additional administrative penalties.
- Beyond this, the Commission said it may direct app distribution platforms to immediately delist non-compliant lending apps, a tool it has used in previous enforcement waves in collaboration with Google and Apple.
Why lenders deploy multiple apps
According to the President of the Money Lenders Association (MLA), Mr. Gbemi Adelekan, digital lenders deploy multiple apps for different purposes.
“The multiple apps are deployed based on target markets and businesses. A company can have an app for nano loan, business loan, insurance, savings, and all of that. But also understand that this makes it cumbersome for the FCCPC to monitor all of the apps, which is why they are coming up with a cap,” he said.
Adelekan said all the lenders with more than five apps will now have to consolidate them and move their customers to the ones they are permitted to use.
However, a senior official of one of the approved lenders, who would not want to be named, said the deployment of multiple apps was the root of the illegal practices in the digital lending space.
“What many of the registered companies do is that they present one or two apps to the FCCPC for approval and then operate multiple other apps in different names, which allow them to carry out illegal activities,” he said.
According to him, some of the companies approved and registered by the FCCPC are behind several unregistered loan apps, causing problems in the market.
He noted that with the new guideline placing a cap of five, some of them would be forced to shut down their extra apps.
What this means for consumers who rely on digital credit
The new cap carries implications for millions of Nigerians who depend on digital lenders for quick, short-term credit, especially those underserved by traditional banking.
As lenders consolidate their app portfolios, consumers may notice:
- Fewer app choices, especially among lenders that previously operated up to eight platforms.
- Temporary service disruptions as operators merge apps, migrate users, or retire non-compliant platforms before the January 5 deadline.
- Stronger data protection, with the FCCPC better positioned to track app ownership and enforce penalties for data misuse or harassment.
However, consumers may also face short-term access constraints if certain popular apps are delisted or discontinued during the compliance process.
What you should know
The FCCPC had earlier fixed October 31, 2025, as the deadline for all digital lenders in the country to get registered or face a fine of N100 million.
Nairametrics reported that the race to beat the deadline had led to a surge in the number of registered digital lenders in the country, with the number jumping to 492 in October.
However, the Commission last week announced the extension of the deadline to January 5, 2026 to allow full compliance.
To that effect, the Commission released the Guidelines on the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, as an additional instrument to guide compliance.
The guidelines, made under Sections 17 and 163 of the FCCPA, provide detailed directions for digital lenders, including documentation requirements.
