Concerns over shady practices amid upsurge in loan app companies in Nigeria

By Mark Ogagan

There are growing concerns over shady practices as the number of loan app companies in Nigeria has surged to 380 this month from 320 in October last year.

The 380 companies now serving the digital loan market have secured approval from either the Federal Competition and Consumer Protection Commission (FCCPC) or a license from the Central Bank of Nigeria to provide the service.

A look at the FCCPC database shows that 322 of the digital lenders have been granted full approval by the Commission, while 42 others are operating with conditional approval.

The database also includes 16 companies licensed by the CBN, bringing the total number of approved digital lenders to 380.

Meanwhile, as the number of digital lenders is growing, there have also been rising concerns over the mode of operations of some of the companies.