The number of digital lenders approved to operate in Nigeria has surged to 380 as of February, marking a significant increase from 320 in October of the previous year. These companies have either received approval from the Federal Competition and Consumer Protection Commission (FCCPC) or a license from the Central Bank of Nigeria (CBN). According to the FCCPC’s database, 322 digital lenders have been granted full approval, while 42 operate with conditional approval. Additionally, 16 companies hold CBN licenses, bringing the total number to 380.
While this growth reflects the increasing role of digital lending in Nigeria’s financial ecosystem, concerns have been mounting over unethical practices by some lenders. Many borrowers have reported distressing cases involving unauthorized loan disbursements, inflated repayment amounts, and aggressive debt recovery tactics. Some licensed lenders have been accused of engaging in harassment and issuing threats—tactics previously associated with illegal loan sharks.
A borrower, Ijeoma, shared a shocking experience of applying for a ₦100,000 loan, only to receive ₦1 million instead. When she reached out to the lender’s customer service to report the discrepancy, she was informed that she must repay ₦1.118 million within just three days. Another borrower, Tola, narrated a similar ordeal where he received an unsolicited loan from a licensed lender and was forced to repay it with high interest.
Financial analyst Gbolagunte Ajayi criticized the FCCPC for focusing more on granting approvals rather than ensuring strict monitoring of lender operations. He emphasized the need for better oversight to curb unethical lending and aggressive debt recovery practices. According to him, the rapid approval of digital lenders without proper scrutiny has led to widespread exploitation of vulnerable borrowers.
In response to the growing concerns, the FCCPC has defended its regulatory efforts, stating that it has taken measures to address misconduct in the industry. The commission reported that 47 loan apps have been delisted from the Google Play Store, while 88 others remain under close monitoring. Dr. Adamu Abdulahi, the Executive Commissioner of Operations at the FCCPC, explained that the commission’s goal is to track the companies operating these loan apps and hold them accountable for any infractions.
Abdulahi acknowledged the challenges facing the regulatory body but stressed that digital lenders play a crucial role in providing financial access to millions of Nigerians. He assured the public that the FCCPC is working to strike a balance between enabling the growth of digital lending and protecting consumers from exploitative practices. According to him, the agency remains committed to ensuring that borrowers are treated fairly while also addressing the issue of loan repayment defaults.
As digital lending continues to expand in Nigeria, industry stakeholders are urging authorities to enforce stricter regulations to prevent further exploitation of borrowers. While the FCCPC’s actions indicate a step in the right direction, consumer protection advocates argue that more needs to be done to ensure ethical lending practices and fair debt collection strategies in the sector.
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