INTRODUCTION
The Federal Competition and Consumer Protection Commission (FCCPC), is primarily saddled with the responsibility of protecting and advancing the interest and well-being of consumers in Nigeria.
THE NITDA SANCTION ON SOKOLOAN
On August 17th 2021, the National Information Technology Development Agency (NITDA) sanctioned an online lending platform, Soko Lending Company Limited (Soko Loans), for privacy invasion, unauthorized disclosures, failure to protect customers’ data and defamation of character. The action was taken after a series of complaints from the public. The Company has imposed a monetary sanction of NGN 10,000,000.
THE INTER-AGENCY
In November 2021, the Federal Competition and Consumer Protection Commission (FCCPC) alongside 5 other agencies, set up an Inter-Agency Joint Task Force to look into the practices of Digital Money Lenders (DMLs) including privacy invasion, failure to protect personal data, data abuses and other aberrant debt collection practices.
STEPS TAKEN
On August 18, 2022, Inter-Agency Joint Task Force, conducted enforcement actions in Lagos with respect to Digital Money Lenders (DMLs) in addition to the enforcement action the task force established a mutually adopted Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022.
In light of the Registration Framework and Guidelines, the Commission commenced the registration of DMLs. By an Order and Notice of the Commission on August 17, 2022, existing DMLS were required to comply within ninety (90) days. The payment gateways used by the DMLs are needed to demand FCCPC Approval from the DMLs to continue to provide their services. In a big step, Google Play has requested digital lenders to provide evidence of their compliance with FCCPC within 30 days from November 16, 2022, or be removed from the platform.
CHECKLIST OF DOCUMENTS TO BE SUBMITTED FOR REGISTRATION AND APPROVAL OF DMLs
- A certified copy of the certificate of incorporation of the digital lender;
- Evidence of compliance with Form DLG 001 – FCCPC Interim Digital Lending Guidelines Form;
- Terms of use;
- Privacy policy;
- Code of conduct;
- Any and all previous defamatory messages sent to customers and any and all new templated messages;
- Proof of disciplinary action against erring staff;
- A brief description of the business and where relevant, its groups;
- Organogram showing the role players, and location of key role players and any operational approving authority;
- Name and address of a person within the business who is authorized to accept all the correspondence and accept service on behalf of the business;
- Evidence of membership of any trade or professional associations;
- Any service level agreements with any service providers with respect to operations but excluding administration;
- Proof of tax payments or tax waivers where applicable.
- Evidence of all applicable fees associated with service.
- Evidence of compliance with Form DLG 002 – Declaration for Digital Lending Businesses in Nigeria.
STATUS OF DMLs
The FCCPC on November, 15th 2022 provided a list of DMLs who has been granted approval and those with conditional approval.
FULL APPROVAL
- SYCAMORE INTEGRATED SOLUTIONS LIMITED
- TRADE DEPOT
- TAJOW INVESTMENT
- BLUE RIDGE MICROFINANCE BANK LIMITED
- GROLATECH CREDIT LIMITED
- BRANCH INTERNATIONAL FINANCIAL SERVICES LIMITED
- BRANCH INTERNATIONAL FINANCIAL SERVICES LIMITED
- P2VEST TECHNOLOGY LIMITED
- CREDITWAVE FINANCE LIMITED
- KEENEST TECH SERVICE LIMITED
- FAIRMONEY MICRO FINANCE BANK
- ALTRACRED FINANCE INVESTMENT LIMITED
- CREVANCE CREDIT LIMITED
- MENACRED COMPANY LIMITED
- AFROWIDE DEVELOPMENT LTD
- RED PLANET NIGERIA LIMITED
- AFROFIRST MOBILE AND TECHNOLOGY COMPANY LIMITED
- RANKCAPITALS LIMITED
- IBS GOLDEN INVESTMENT COMPANY LIMITED
- LENDVISERY SERVICES LIMITED
- CREDITWAVE FINANCE LIMITED
- RENMONEY MICROFINANCE BANK LIMITED
- SWIPEBILL TECHNOLOGIES NIGERIA LIMITED.
- HOMETOWN FINTECH LIMITED
- GIASUN TECHNOLOGY NIGERIA LIMITED
- BE RESOURCES LIMITED
- ROCKIT LENDERS NIGERIA LIMITED
- PIVO TECHNOLOGY LIMIED
- YES CREDIT COMPANY LIMITED
- FUBRIL CENTURY LIMITED
- IRORUN TECHNOLOGIES LIMITED
- CSENSE LIMITED
- SUPREME HELP COOPERATIVE SOCIETY LIMITED
- ORCOM AND ORCOM BUSSINESS SUPORT LIMITED
- PAYHIPPO LIMITED.
- EASYCHECK FINANCE INVESTMENT LIMITED
- QUARK FINANCIAL NIGERIA LIMITED
CONDITIONAL APPROVAL
- TRIPPDBASE LIMITED
- BLACKCOPPER SERVICE
- OWOAFAR FINTECH SERVICE
- PAYLATER HUB
- WINDVILLE FINANCIAL NIGERIA LIMITED
- AFROFIRST MOBILE AND TECHNOLOGY COMPANY LIMITED
- ORCOM AND ORCOM BUSINESS SUPPORT LIMITED
- OTP INTERNET TECHNOLOGY LTD
- RED HARBOR FINTECH LIMITED
- BERYL SPRING GLOBAL LIMITED
- HOMETOWN FINTECH LIMITED
- AJAX LENDING LIMITED
- RACEOVA NIG. LIMITED
- LANTANA TECHNOLOGY LIMITED
- THE PLATFORM DIGITAL NETWORK LIMITED
- ZIPPY CAPITAL LIMITED
- NEO-LINK TECHNOLOGY LIMITED
- TRIPOBASE LIMITED
- BESTFIN NIGERIA LIMITED
- POCKETFUEL FINANCE LIMITED
- LENDING EDGE LIMITED
- TED ROCKET LIMITED
- PENAID LIMITED
- ALTARA CREDIT LIMITED
- NEW CREDAGE NIGERIA LIMITED
- LENDHA TECHNOLOGIES LIMITED
- DOJA LEMAIRE GLOBAL LIMITED
- PAYDAYHUB ONLINE NIGERIA LIMITED
- RETAIL BOOSTER LIMITED
- FINNEW FINTECH LIMITED
- FEZOTECH NIGERIA LIMITED
- ORANGE LOAN & PURPLE CREDIT LIMITED
- CITADELE CAPITALS LIMITED
- FEWCHORE FINANCE COMPANY LIMITED
- A1 CAPITAL SOLUTION LIMITED
- ONE PAYOUT LIMITED
- LINKPARK TECHNOLOGY NIGERIA LIMITED
- LIDYA GLOBAL LIMITED
- PHOENIX PAYMENT SOLUTIONS LIMITED
- RED PLANET NIGERIA LIMITED
- KWABA INTERNATIONAL LIMITED.
- MAYWOOD LENDING LIMITED.
- PRINCEPS CREDIT SYSTEM LIMITED
- LINKPARK TECHNOLOGY NIGERIA LIMITED
EXTENSION OF REGISTRATION DEADLINE
In light of the progress made by the Inter-Agency and the need to create a mutual working relationship with the DMLs, the Commission has not extended the deadline to January 31st, 2023, to enable all DMLs to comply with the Order.
Tolulope Oguntade Regville Associates compliance@regville.com 08065111667