FCCPC Caps Digital Lenders at Five Apps Amid Industry Consolidation Deadline
The Federal Competition and Consumer Protection Commission (FCCPC) is instituting a major regulatory overhaul of Nigeria’s digital lending sector. The Commission has issued new guidelines capping the number of lending applications (apps) an operator can run to a maximum of five (5).
This stringent measure comes with a firm compliance deadline of January 5, 2026, forcing consolidation among lenders who often use multiple brand identities to obscure operations, evade regulatory scrutiny, and engage in practices like harassment and opaque pricing.
Table of Contents
Regulatory Cap: Maximum of Five Lending Applications
Financial Disincentives and Registration Fees
Why Lenders Deploy Multiple Apps
Impact on Consumers and Market Dynamics
Compliance Deadline Extension
1. Regulatory Cap: Maximum of Five Lending Applications
The new cap is part of the FCCPC’s Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025 and aims to reduce market fragmentation while ensuring clearer accountability.
The guidelines state that even joint ventures providing consumer lending services must limit their aggregate number of apps to five. Crucially, each member of the joint venture is barred from independently operating additional lending apps unless the joint venture is terminated.
Current State: Some approved digital lenders currently operate six to eight or more apps, complicating oversight and enforcement, particularly concerning consumer data misuse and aggressive loan recovery tactics.
Regulatory Goal: By setting a clear limit, the FCCPC intends to stop lenders from spreading operations across numerous small, untraceable platforms, ensuring that all lending activities are linked to a single, accountable entity.
2. Financial Disincentives and Registration Fees
The FCCPC has introduced a fee structure designed to financially disincentivize the use of numerous apps, encouraging operators to streamline their services.
Standard Fee: The base approval fee covers the registration of up to two lending applications.
Additional App Fee: For lenders seeking to register between three and the maximum limit of five apps, there is an additional fee of ₦500,000 per extra application.
This financial structure rewards streamlined operations and penalizes volume, directing lenders to invest in compliance, responsible lending, and robust customer support rather than simply maximizing brand presence.
Mandatory Disclosure and Penalties
For license renewal, lenders must provide full disclosure of every app used. Failure to declare any active or intended lending application can lead to:
Denial of license approval.
License revocation or additional administrative penalties.
The FCCPC may also direct app distribution platforms (like Google and Apple) to immediately delist non-compliant lending apps, a potent enforcement tool used in past regulatory waves.
3. Why Lenders Deploy Multiple Apps
The use of multiple apps is driven by both legitimate business strategies and regulatory evasion tactics.
Market Segmentation: According to Mr. Gbemi Adelekan, President of the Money Lenders Association (MLA), multiple apps are deployed based on target markets (e.g., nano loans, business loans, savings, and insurance).
Evasion of Scrutiny: A senior official from an approved lender noted that some registered companies present only one or two apps for FCCPC approval while operating multiple other unregistered apps under different names. This tactic allows them to carry out illegal practices, such as excessive interest rates or harassment, while maintaining an officially compliant face.
The new cap will force lenders operating outside the legal framework to consolidate their operations or shut down their unpermitted platforms before the January 5 deadline.
4. Impact on Consumers and Market Dynamics
The consolidation driven by the five-app cap carries mixed implications for the millions of Nigerians who rely on digital credit:
| Potential Positive Impact | Potential Short-Term Constraints |
| Stronger Data Protection as app ownership and liability are clarified. | Fewer App Choices among lenders that previously ran fragmented platforms. |
| Clearer Accountability for harassment and opaque pricing practices. | Temporary Service Disruptions during user migration and app mergers. |
| Enhanced Enforcement capability for the FCCPC. | Short-term access constraints if popular, but non-compliant, apps are delisted. |
Overall, the measure is expected to lead to a healthier, more compliant digital lending ecosystem, although consumers may experience short-term instability during the transition.
5. Compliance Deadline Extension
The FCCPC had initially set October 31, 2025, as the final deadline for all digital lenders to register or face a hefty fine of ₦100 million.
Registered Lenders: The urgency led to a surge in registration, with the number of approved digital lenders jumping to 492 in October 2025.
New Deadline: The Commission subsequently announced an extension of the deadline to January 5, 2026, to allow for full compliance, especially concerning the complex requirements of the new cap and guidelines.
The guidelines, made under Sections 17 and 163 of the FCCPA, serve as the detailed instrument to ensure transparency and responsible practice in the rapidly evolving digital credit space.
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