Digital lenders in Nigeria are currently worried over recent moves by the Federal Competition and Consumer Protection Commission (FCCPC) to regulate their interest rates.
Nairametrics took a look at 10 of the most downloaded loan apps in Nigeria per Google Play Store data and the interest rates they offer, here is what we found:
The Federal Government’s consumer credit scheme anchored by the Nigeria Credit Corporation is a game changer in the money lending sector. Loan applicants have expressed satisfaction at the interest rate but this is a huge disadvantage for loan app businesses.
The number of companies approved to provide loans to Nigerians through digital platforms popularly known as loan apps has jumped to 320 this September from 284 in May.
The digital lending space in Nigeria is currently in dire strait as both the lenders and the borrowers are lamenting increasing non-performing loans and the high cost of borrowing.
According to the FCCPC database, a total of 232 companies have been granted full approval to operate as digital lenders in the country while 41 companies have conditional approval.
The Nigeria Data Protection Commission (NDPC) is currently investigating over 400 cases of privacy breaches involving digital lenders, popularly known as loan apps.
The digital lending space in Nigeria is attracting more players by the day, leading to a steady increase in the number of loan app companies approved by the Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN).
More Nigerians are now resorting to credit from loan apps to survive as the harsh economic conditions bite harder, Nairametrics has gathered.
Despite challenges surrounding their mode of operations, especially concerning debt recovery, loan apps or digital money lenders continue to play significant roles in the informal sector of the economy by providing quick and easy loans for Nigerians.
The Federal Competition and Consumer Protection Commission (FCCPC) has said it would be developing a new regulatory framework to address Nigerians’ rising indebtedness to digital money lenders (DMLs), known as loan apps.
The digital lending space in Nigeria continues to boom despite the issues around unethical practices by some of the lenders and even the untoward attitudes of some borrowers.
