Nigeria’s fast-growing digital lending industry is bracing for its biggest regulatory overhaul yet as the Federal Competition and Consumer Protection Commission (FCCPC) introduces a new rule limiting operators to a maximum of five lending applications.
The move, which comes with a hard January 5 compliance deadline, is expected to trigger widespread consolidation across a sector long criticized for fragmentation, poor oversight, and consumer abuse.
Fintech executives familiar with the market told Fintech Insights that several approved lenders currently operate six to eight apps, often under different brand names; an approach that has historically enabled broader reach but also created channels for unregulated lending, aggressive loan recovery practices, and misuse of customer data.
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In its newly released guideline, which follows the Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025 published in July, the FCCPC made its position unambiguous:
“Where the applicants are in a joint venture… the aggregate number of Lending Applications… shall not exceed five (5). Each member of the joint venture shall not independently register, operate or control lending apps until the termination of the joint venture,”
the Commission stated.
The intent is clear: reduce the number of lending platforms, close loopholes that lenders use to mask illicit operations, and strengthen regulatory visibility across the digital lending ecosystem.
A New, Costlier Framework for App Registration
Under the revised rules, the standard approval fee covers up to two apps. Any lender seeking to register additional apps up to the new maximum of five must pay N500,000 per extra app.
The structure introduces a meaningful financial deterrent for lenders who have long relied on multiple apps as a customer-acquisition strategy.
As part of licence renewal, lenders must now fully disclose every app they operate. Failure to do so may lead to:
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outright denial of approval,
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licence revocation, or
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further penalties.
Additionally, the FCCPC reserved the right to order immediate delisting of non-compliant apps from Google Play, Apple App Store, and other distribution platforms; an enforcement mechanism it has deployed in earlier crackdowns.
Why Lenders Built So Many Apps
Stakeholders say digital lenders typically deploy multiple apps to serve different customer segments.
“The multiple apps are deployed based on target markets and products; nano loans, SME loans, insurance, savings, and so on,” said Gbemi Adelekan, President of the Money Lenders Association (MLA).
But he acknowledged that the abundance of apps complicates regulatory monitoring, making the FCCPC’s cap inevitable.
However, a senior executive at one approved lender who requested anonymity said the proliferation of apps has also enabled misconduct.
“Many companies show only one or two apps to the FCCPC for approval, then operate several unregistered ones under different names. Those hidden apps are where most of the illegalities happen,” the official told Fintech Insights.
He added that the cap will force guilty operators to shut down their shadow apps.
Impact on Millions of Digital Credit Users
With digital lending now integral to everyday survival for many Nigerians, the new rules carry significant implications:
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Fewer app options, especially among lenders previously running large app portfolios
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Possible temporary service disruptions as lenders merge apps, migrate users, or shut down non-compliant platforms
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Better consumer protection, with clearer app ownership trails and stronger oversight
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Potential short-term access issues, particularly if frequently used apps get delisted
Regulators argue that long-term benefits which includes better data privacy enforcement and reduced harassment will outweigh the short-term friction.
A Rapidly Expanding Sector Under Tightening Scrutiny
In October 2025, the FCCPC set an initial deadline of October 31 for all digital lenders to register or face N100 million fines. The rush to comply saw the number of registered digital lenders spike to 492, according to Nairametrics.
Last week, however, the Commission extended the deadline to January 5, 2026, citing the volume of applications and the need for orderly compliance. It simultaneously issued the new operational guidelines under Sections 17 and 163 of the FCCPA.
With the cap now in place, industry insiders say 2026 could mark the beginning of a more transparent, consolidated, and accountable digital lending environment; one where the FCCPC seeks not just registration, but real behavioural change across Nigeria’s online credit market.
