The variety of firms registered and licensed to offer digital lending companies by means of cellular apps has elevated to 425 as of Might 2025, up from 320 recorded final 12 months.
The 425 firms are people who have both secured approval from the Federal Competitors and Shopper Safety Fee (FCCPC) or been licensed by the Central Bank of Nigeria to offer digital lending companies.
A take a look at the database of the FCCPC reveals that 362 of the digital lenders have been granted full approval by the Fee, whereas 42 others are working with conditional approval.
The database additionally contains 21 firms licensed by the CBN.
Nevertheless, the rising variety of gamers can also be fueling a rise within the fee of indebtedness by debtors, who transfer from one lender to a different to rack up credit with out repaying.
In accordance with the lenders, the inefficiency of the prevailing credit score bureaus within the nation is including to the issue, whereas some lenders, pushed by competitors, are jettisoning credit score historical past to present out loans indiscriminately.
In accordance with the Chairman of the Cash Lenders Affiliation, the umbrella physique of the registered mortgage app firms in Nigeria, Mr. Gbemi Adelekan, many retired bankers are transferring into the digital lending house to stay energetic within the {financial} system, therefore the rising variety of gamers.
He famous that digital lending has additionally turn out to be the selection for a lot of firms due to the convenience of entry.
“For those who consider microfinance, the regulation is tighter and the licence is dear. For this reason many firms are coming into the house,” he stated.
However in response to him, the foremost concern is how Nigerians are utilizing the assorted platforms to rack up loans with out servicing them.
Adelekan noticed that the brand new gamers, out of their aggressive push to win clients, usually push out loans with out checking the credit score historical past of the debtors.
“After they (new gamers) come on board, they don’t wish to begin small. They simply wish to purchase as many shoppers instantly as attainable.
“So, they push out cash. What they do is that once you apply for N50,000, as a result of it’s your first time, they may let you know that, “okay, let’s begin with N5,000.
“With that, persons are simply going round accumulating N5,000 mortgage right here and there with out repaying,” he stated.
Whereas acknowledging that credit score bureaus in Nigeria are attempting their greatest to make credit score historical past experiences of Nigerians obtainable when requested, he stated the method isn’t environment friendly sufficient to fulfill up with the rising demand for fast loans being provided by digital lenders.
In accordance with him, getting a credit score historical past report from the bureaus may take one month after request, which isn’t supreme for loans that should be disbursed inside 24 hours or much less.
“Inside the 30 days that you’re anticipating the report, folks have gone spherical to gather loans from totally different apps.
“Simply final week, my folks acquired the report of somebody who’s owing 35 digital lenders and needed to gather one other mortgage,” he stated.
He, nevertheless, disclosed that CREDICORP and the CBN are at the moment reviewing the credit score reporting regime and would quickly method the Nationwide Meeting with an government invoice to amend the prevailing.
“For those who’re owing any establishment and also you wish to renew your worldwide passport, you shouldn’t be in a position to, or at the very least you have to be made to pay earlier than you possibly can.
“Landlords ought to be capable to examine your credit in the event that they wish to let their home to you. These issues are vital, in order that your credit score habits follows you in every single place you go,” he stated.
In the meantime, regardless of the rise within the variety of digital leaders which have registered with the FCCPC and secured approval to function, lots of of different unregistered lenders are nonetheless taking part in out there and getting patronage from determined debtors.
Abdullahi stated the Fee can also be making an attempt to strike a stability between the continual operations of the mortgage apps and the shoppers’ defaulting in repaying their loans, including that regardless of the challenges, mortgage apps are taking part in vital roles within the financial system.
