FCCPC caps digital lenders to 5 apps  

The Federal Competition and Consumer Protection Commission (FCCPC) has moved to restrict operators to a maximum of five lending applications as digital lending sector in Nigeria faces a structural shake-up .

The new guidelines, which form part of the Commission’s broader effort to sanitise the digital credit space, come with a firm compliance deadline of January 5, setting the stage for significant consolidation among lenders that currently operate far beyond the new cap.

Currently, some of the approved digital lenders operate six to eight apps, often using multiple brand identities to widen market reach or evade regulatory scrutiny.

This has complicated oversight, especially in cases involving consumer data misuse, harassment in loan recovery, and opaque pricing.

“For the avoidance of doubt, where the applicants are in a joint venture for the provision of Consumer Lending Services, the aggregate number of Lending Applications to be used or controlled by the joint venture shall not exceed five (5), and in any case, each member of the joint venture shall not, nor shall it be permitted, to independently register, use, operate or control consumer lending apps or software for the provision of Consumer Lending Services unless and until the termination of the joint venture,” the Commission said in the guidelines just released as a follow up to its Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025 released in July.

By setting this threshold, the Commission aims to reduce fragmentation in the market, ensure clearer accountability, and stop lenders from spreading their operations across numerous small platforms that are difficult to track.

The guideline also redefines how lenders pay for app approvals. The standard approval fee under Regulation 15(2)(a) and (b) covers registration of up to two lending applications.

For lenders seeking to register more than two apps, up to the limit of five, there is an additional fee of N500,000 per extra application.

This structure creates a financial disincentive for operators that historically relied on volume, encouraging them instead to streamline operations and invest in compliance, customer support, and responsible lending systems.

As part of licence renewal, digital lenders must now provide full disclosure of every app used in delivering consumer lending services.

The FCCPC said failure to declare any active or intended lending application can result in denial of approval.

Where an approval has already been granted, undisclosed apps may lead to licence revocation or additional administrative penalties.

Beyond this, the Commission said it may direct app distribution platforms to immediately delist non-compliant lending apps, a tool it has used in previous enforcement waves in collaboration with Google and Apple.