Nigeria’s digital lending sector is set for a major shake-up as the Federal Competition and Consumer Protection Commission moves to restrict operators to a maximum of five lending applications.
The new guideline, part of the Commission’s effort to sanitise the digital credit space, comes with a firm compliance deadline of January 5, signaling significant consolidation among lenders that currently operate far beyond the new cap.
At present, some approved digital lenders run six to eight apps, often using multiple brand identities to broaden market reach or evade regulatory scrutiny. This has complicated oversight, especially in cases involving consumer data misuse, harassment during loan recovery, and non-transparent 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 new guidelines released as a follow-up to its Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025.
By establishing this threshold, the FCCPC aims to reduce market fragmentation, ensure clearer accountability, and curb the spread of lender operations across numerous small platforms that are difficult to monitor.
The guideline also reforms 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.
Lenders will have to pay an extra N500,000 for each subsequent application if they want to register more than two, up to a maximum of five.
This creates a financial disincentive for operators that historically relied on volume, pushing them to streamline operations and focus on compliance, customer support, and responsible lending.
In the process of renewing their licenses, digital lenders are now required to reveal all applications utilized in delivering lending services. Not disclosing any current or planned lending application may result in rejection of approval
Where approval has already been granted, undisclosed apps may result in licence revocation or additional administrative penalties. The Commission may also direct app distribution platforms to immediately delist non-compliant apps, a method it has deployed previously with Google and Apple.
Explaining why lenders maintain multiple apps, President of the Money Lenders Association, Mr. Gbemi Adelekan, said:
“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 added that lenders with more than five apps will now have to consolidate and migrate customers to the permitted platforms.
For millions of Nigerians relying on digital credit, the cap carries important implications. As lenders consolidate their app portfolios, consumers may experience fewer app options, temporary service disruptions as platforms merge or retire before the January 5 deadline, and stronger data protection as the FCCPC gains better oversight of app ownership.
However, some may face short-term access challenges if certain popular apps are delisted or discontinued during the compliance process.
