Federal Competition & Consumer Protection Commission (FCCPC), has said it is recommencing the registration of digital money lenders in Nigeria.
A statement by Executive Vice Chairman/Chief Executive Officer of the Commission, Babatunde Irukera, Friday in Abuja, said the move became necessary as the Commission continues to receive requests for registration, approval or clearance by both then existing platforms that failed to timely comply with the mandatory deadlines.
While stating that it is in pursuant to several sections of its Act, the Commission said it would resume the process of collecting both new and old applications which should be duly accompanied with a late processing fee.
“On August 18, 2022, the Federal Competition & Consumer Protection Commission (FCCPC) as part of the Joint Regulatory and Enforcement Task Force (JRETF) introduced a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines 2022 or “Guidelines”), as well as an associated registration process/platform.
“For already existing Digital Money Lenders (DMLS), the Guidelines mandated completion of the registration process by November 14, 2022 in order to remain in business and retain privileges of services by providers such as Google Playstore and payment systems or gateways. On December 6, 2022, the Commission extended that deadline to January 31, 2023; and subsequently to March 27, 2023.
“Accordingly, while the JRETF continues the work of developing a more robust, comprehensive and enduring digital lending regulatory framework, the Commission will resume receiving and approving eligible DML applications (new and previously inexistent businesses) and requests (including those already received and pending) under, and in accordance with the Guidelines and existing process,” it said.
Accordingly, FCCPC directed those submitting late applications to include a letter stating reasons for failing to complete registration before the first deadline.
“In addition, these applications (whether already received and pending, or otherwise) shall be subject to a late processing fee. This fee should be paid through the Remita platform under the Approval Fee section.
“Financial institutions that are licensees, and subject to the regulatory oversight of the Central Bank of Nigeria (CBN) are exempt, and may obtain the required approval by a written request seeking a waiver by demonstrating such exemption, including evidence of licensure by the CBN.
“The Commission and JRETF continue to monitor the market and enforce the law with respect to digital lending. While violations still exist, the Commission notes substantial reduction in practices that violate consumer privacy, constitute harassment and unacceptable unconventional loan repayment/recovery strategies, as well as unexplained charges associated with loans,” the Commission further explained.
The Commission urged Nigerians to continue to report incidences of infringement for appropriate regulatory responses.
