Surge in Digital Lending: 320 Companies Now Approved to Offer Loans to Nigerians Amid Economic Hardship
The number of companies authorized to provide digital loans in Nigeria has surged to 320 in September, up from 284 in May, as demand for quick loans continues to rise amid economic challenges. The surge in applications for loans, which have quadrupled this year, highlights the growing reliance on digital lending platforms.
Among the 320 approved companies, 264 have secured full approval from the Federal Competition and Consumer Protection Commission (FCCPC), 42 operate with conditional approval, and 14 are licensed by the Central Bank of Nigeria (CBN). Despite this, many unregistered lenders are still active in the market, leading the FCCPC to place 88 loan apps under its watchlist and delist 47 from the Google Play Store due to customer complaints of harassment and defamation.
According to the Chairman of the Money Lenders Association, the umbrella body of the registered loan app companies in Nigeria, Mr. Gbemi Adelekan, many Nigerians now rely on credit for survival, making digital lending services an attractive option despite the risks of non-repayment.
Dr. Adamu Abdullahi, Executive Commissioner of Operations at FCCPC, emphasized the need for regulation to trace and hold companies accountable while ensuring that digital lenders continue to play their vital role in the economy.
