FCCPC Loan App Purge: 521 Companies Under Review as January Deadline Lapses
The grace period for digital money lenders (DMLs) in Nigeria has officially ended. Following the January 5, 2026, deadline set by the Federal Competition and Consumer Protection Commission (FCCPC), 521 companies have now come under intense regulatory scrutiny. Platforms that failed to meet the new "DEON" (Digital, Electronic, Online, and Non-Traditional) lending requirements now face immediate removal from global app stores and fines of up to ₦100 million.
Under the leadership of Executive Vice Chairman Tunji Bello, the commission has shifted from "interim guidelines" to full enforcement. The move aims to permanently sanitize a sub-sector that has been notorious for "debt-shaming," privacy violations, and predatory interest rates.
1. The Status of Digital Lenders (January 2026)
The FCCPC’s updated database reveals a sharp increase in applications as firms scrambled to meet the 2026 compliance window.
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| Category | Status (Jan 2026) | Regulatory Action |
|---|---|---|
| Fully Approved | ~310 Companies | Authorized for Google/Apple Stores |
| Conditionally Approved | ~120 Companies | 90-day observation; limited ops |
| Under Review/Radar | 521 Companies | High Risk: Subject to technical audit |
| Watchlist/Delisted | 90+ Apps | Immediate removal; Bank accounts frozen |
2. Why the January 5 Deadline Matters
The Digital Lending Regulations 2025, which came into full effect this week, introduced the strictest governance standards in Nigerian fintech history. To remain legal, an app must now prove:
No Contact Scraping: Apps are strictly forbidden from accessing a borrower's phone contacts or gallery.
Interest Rate Caps: Transparent APR (Annual Percentage Rate) disclosures are now mandatory.
GSI Integration: Use of the Global Standing Instruction (GSI) to recover debts fairly, replacing the "harassment-first" model.
3. The ₦100 Million Penalty & Enforcement
The FCCPC has warned that the era of "soft warnings" is over. Enforcement as of January 2026 includes:
Mass Delisting: The commission is working with Google and Apple to wipe unregistered APKs and apps from their ecosystems.
Bank Freezes: The CBN has been instructed to freeze the settlement accounts of companies found operating without FCCPC "Full Approval."
Heavy Fines: Violations of consumer privacy now carry a minimum fine of ₦100 million, alongside criminal prosecution for company directors.
Housing Market Impact: The End of "Predatory" Down-Payments?
For the Nigeria Housing Market, the FCCPC’s crackdown on unregulated lenders is a major win for financial stability:
Better Credit Scores: As loan apps integrate with formal Credit Bureaus, "responsible borrowers" will find it easier to build the credit history needed for NHF (National Housing Fund) mortgages.
Reduced "Emergency Sales": Previously, many homeowners were forced into "distress sales" of land or assets to settle high-interest (30% per week) predatory loans. Stable lending rates protect property ownership.
Trusted Financing for Renovations: With 310 apps now "Fully Approved," homeowners can confidently use digital credit for small-scale home improvements without fear of reputational damage.
