FG recommences registration for digital money lenders

The Federal Government has announced the date to recommence Digital Money Lenders’ registration in Nigeria.
The Executive Vice Chairman of the Federal Competition and Consumer Protection Commission [FCCPC] Babatunde Irukera disclosed this in a statement.
Irukera noted that the development is coming following the inability or failure of some firms to meet up with the previous deadline.
Recall that the Commission had, on November 14 2022, ordered digital lenders operating in the country on a mandatory registration.
However, the deadline for registration was extended to January 31 2023, then March 27, 2023.
The Commission stated that the effort is part of the Joint Regulatory and Enforcement Task Force (JRETF) and guidelines to sanitize the digital space of fraudulent lenders.
FCCPC added that licensees under the Central Bank of Nigeria are exempted from the registration.
“For already existing Digital Money Lenders (DMLS), the guidelines mandated completion of the registration process by November 14, 2022, 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 March 27, 2023”, noted the FCCPC Director General.

Continuing, Irukera said, “Since acceptance and processing of registration closed, the Commission has continued to be inundated with requests for registration, approval or clearance by both then-existing platforms that failed to comply with the mandatory deadlines timely and new businesses seeking to commence operations.
“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 nonexistent businesses) and requests (including those already received and pending) under and following the guidelines and existing process.”
Explaining further he said, “For businesses that existed and or were taken down by the Google Playstore or ceased transaction processing or termination services by payment systems or gateways, the Commission will only consider and process such applications (whether currently received and pending before the Commission or otherwise) upon a statement of justification that sufficiently articulates an acceptable reason or justification for failing to conclude or complete the registration before the expiration of the previously set 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 concerning digital lending. While violations still exist, the Commission notes a substantial reduction in practices that violate consumer privacy and constitute harassment, unacceptable unconventional loan repayment/recovery strategies, and unexplained charges associated with loans.
“The Commission welcomes continued consumer vigilance in reporting infringement incidents for appropriate regulatory responses”, the Commission stated.