{"id":5179,"date":"2022-05-25T16:29:07","date_gmt":"2022-05-25T16:29:07","guid":{"rendered":"https:\/\/koriatlaw.com\/?p=5179"},"modified":"2022-05-25T16:29:07","modified_gmt":"2022-05-25T16:29:07","slug":"koriats-update-on-fintech-lending-law-in-nigeria-may-2022","status":"publish","type":"post","link":"https:\/\/koriatlaw.com\/2026\/2022\/05\/25\/koriats-update-on-fintech-lending-law-in-nigeria-may-2022\/","title":{"rendered":"KORIAT\u2019S UPDATE ON FINTECH LENDING LAW IN NIGERIA (MAY 2022)"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"990\" src=\"https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER-1024x990.jpeg\" alt=\"\" class=\"wp-image-4967\" srcset=\"https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER-1024x990.jpeg 1024w, https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER-300x290.jpeg 300w, https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER-768x742.jpeg 768w, https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER-650x628.jpeg 650w, https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER-760x734.jpeg 760w, https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER-370x358.jpeg 370w, https:\/\/koriatlaw.com\/2026\/wp-content\/uploads\/2022\/01\/MONEY-LENDER.jpeg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Introduction<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Money Lending business in Nigeria has\nwitnessed a paradigm shift particularly in the way money lenders do their business.\nMoreso, is the aggressive campaign by the Federal Competition Consumer\nProtection Commission (\u201cFCCPC\u201d) in collaboration with other law enforcement agencies\nto bring sanity into the lending landscape. The FCCPC is clothed with the\npowers to initiate strategy to prohibit unfair business practices in a bid to\nprotect consumer rights in Nigeria. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we shall briefly examine the\ncommendable steps taken so far by FCCPC with a view to improving the business\nof money lending in Nigeria. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FCCP\u2019S Regulatory Actions against Money\nLender\u2019s Companies<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong><em>Ceaseless <\/em><\/strong><strong><em>Aggressive\nEnforcement<\/em><\/strong><strong><em> actions<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>taken on<\/em><\/strong><strong><em> Unregistered Money Lenders<\/em><\/strong><\/li><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">In our previous updates on fintech\nlending law in Nigeria: <a href=\"https:\/\/koriatlaw.com\/2026\/koriat-update-on-fintech-lending-law-in-nigeria-january-2022\/\">Koriat\u2019s\nUpdate on Fintech Lending Law in Nigeria (January 2022)<\/a> and <a href=\"https:\/\/koriatlaw.com\/2026\/koriats-update-on-fintech-lending-law-in-nigeria-march-2022\/\">Koriat\u2019s\nUpdate on Fintech Lending Law in Nigeria (March 2022)<\/a>, we reported the Joint Committee\u2019s enforcement against violation of consumer rights and unfair practices\nin the money lending industry by unregistered, unlicensed and\nunethical money lenders in Nigeria. &nbsp;Also, the FCCPC has also embarked on aggressive supervisions, shut down illegal businesses, issued interim regulations, obtained court orders to freeze bank\naccounts of defaulters, engaged&nbsp;mobile applications companies (Google and Apple) to shut down certain mobile applications and directed commercial banks to freeze\nthe bank accounts of fintech companies that are \u201cinfringing and abusive\u201d in\ntheir operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 21<sup>st<\/sup> &nbsp;May 2022, the Federal Competition Consumer Protection Commission (\u201cFCCPC\u201d), and the Nigerian Data Protection Bureau announced the Establishment of a\nJoint Mutual Enforcement Desk. This Desk was created to address crucial data\nprotection to ensure consumers and businesses derive the protection and\nbenefits that were inherent in economic expansion that technology and digital\nmarkets enhanced. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As at 23<sup>rd<\/sup>\nMay 2022, in an interview session with <a href=\"https:\/\/punchng.com\/why-accounts-of-50-firms-operating-loan-apps-are-frozen-fccpc-boss\/\">PunchNews<\/a>,\nthe Director General and Vice Chairman of FCCPC, Mr. Babatunde Irukera stated\nthat 50 Bank Accounts belonging to illegal money lending companies have\nbeen frozen by the law enforcement agencies, 12 illegal Money lending\ncompanies\u2019 applications have also been taken down from Google Play Store. This\nshows the FCCPC\u2019s unyielding commitment to their duties in curtailing illegal\nactivities and violations of consumer\u2019s rights in the money lending space. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><em>Introduction of a regulatory enforcement guideline on Money lending in\nNigeria<\/em><\/strong><strong><em><\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In line\nwith its duty to enforce certain rights of consumers pertaining to money\nlending in Nigeria, the FCCPC has promised to publish its enforcement\nguidelines on the money lending space soon. These guidelines are said to\ninclude <strong><em>further regulatory actions<\/em><\/strong>, consider the <strong><em>interest\nrate calculation<\/em><\/strong> and <em>l<strong>oan repayment strategies<\/strong><\/em> of\nmoneylender which must be transparent fair and must not damage consumers\nreputations. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><em>The <\/em><\/strong><strong><em>Illegal\nActivities and Lending Malpractices <\/em><\/strong><strong><em>to be determined by FCCPC\non<\/em><\/strong><strong><em> Money Lenders <\/em><\/strong><strong><em>for prosecution<\/em><\/strong><em><\/em><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It is\nevident that the FCCP and the allied enforcement\nagencies, in carrying out their investigation on the illegal activities of\nmoney lenders, will look at certain areas which the money lenders have\ndefaulted to determine whether or not to take legal actions against them in the\nNigerian courts. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The\nfollowing are areas FCCPC would look at in their investigation process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">i. Failure to&nbsp;<a href=\"https:\/\/koriatlaw.com\/2026\/costs-and-requirements-of-company-registration-in-nigeria\/\">register\na money lender company with the CAC<\/a>;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ii. Failure to&nbsp;<a href=\"https:\/\/koriatlaw.com\/2026\/key-notes-on-how-to-set-up-a-money-lender-company-in-nigeria\/\">obtain\nthe required state license for money lending business<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">iii. Violation of borrowers\u2019 (or\nother persons\u2019) privacy rights through naming and shaming customers, calling or\nmessaging debtors\u2019 relations without their consent, and so on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">iv. Charging excessive interests\non loans;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">v. Failure to provide loan agreements\nand statement of loan accounts;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">vi. Failure to have a\nregistered\/business address within Nigeria or relocation of business from\nregistered address without notifying the licensing authority;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">vii. Doing money lending business\nwith proceed of crime or facilitating money laundering activities;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">viii. Engaging in other conducts\nthat are deprave, unfair and contradictory to best practices in lending\nbusiness. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>The<\/strong><strong><em> Risks\nAssociated with Illegal Activities and Lending Malpractices<\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Now, the\nrisk associated with Illegal Money lending malpractices are numerous, which may\ngive rise to civil or criminal liabilities for money lenders, depending on the nature of infraction and the\nclaims or charges preferred against them. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below are some of the risks\nassociated with illegal acts and lending malpractices:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">i. Unending police\/regulatory\ninvitation and interrogations relating to business activities;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ii. Police\/regulatory raid of\nmoney lender\u2019s business premises;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">iii. Lockdown of business\npremises pending investigation or compliance with regulatory directives;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">iv. Arrest of money lenders\u2019\nmanagement staff members and directors;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">v. Seizure of assets and working\ntools such as computers, cars, cash, files, storage devices, etc.;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">vi. Restriction of business bank\naccounts of the money lender company through regulatory orders to the money\nlenders\u2019 bankers;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">vii. Forfeiture of money lender\u2019s\nfunds that are attributed to money laundering or regarded as proceed of crime;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">viii.Suspension of Mobile Apps\u2019\noperation upon regulators\u2019 orders to global applications companies (such as\nGoogle, Apple, etc.);<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ix. Refund of excessive interest\ncharges to borrowers;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">x. Payment of compensation to\nborrowers on the directive of regulators or court of law;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">xi. Imposition of fines by\nregulators for violations;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">xii. Imposition of jail term on\ndirectors and management staff of money lending company upon conviction by a\ncourt of law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Conclusion<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It would\nseem that it is no longer business as usual as the FCCPC has embarked on an\naggressive campaign to ward off illegal money lenders companies engaging in\nunwholesome and unethical practices with a view to protecting the interest of\nthe borrowers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Amongst many of the allegations levelled against Money Lenders Companies are that the promoters were lending money with\nunregistered business name which is an illegal activity (see&nbsp;<a href=\"https:\/\/koriatlaw.com\/2026\/costs-and-requirements-of-company-registration-in-nigeria\/\">how\nto register a company with the Corporate Affairs Commission<\/a>) and\nfailed to obtain the necessary operational licence provided for those seeking\nto do lending businesses in any part of Nigeria. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">See also&nbsp;<a href=\"https:\/\/koriatlaw.com\/2026\/key-notes-on-how-to-set-up-a-money-lender-company-in-nigeria\/\">how\nto obtain a Money Lender Licence in Nigeria<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction The Money Lending business in Nigeria has witnessed a paradigm shift particularly in the way money lenders do their business. Moreso, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[16,124,121,271,22,217,218,127],"class_list":["post-5179","post","type-post","status-publish","format-standard","hentry","category-publications","tag-moneylender","tag-fintech-lending","tag-how-to-get-money-lender-license","tag-lending","tag-money-lender","tag-moneylender-law","tag-moneylending","tag-peer-to-peer-lending"],"_links":{"self":[{"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/posts\/5179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/comments?post=5179"}],"version-history":[{"count":0,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/posts\/5179\/revisions"}],"wp:attachment":[{"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/media?parent=5179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/categories?post=5179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/tags?post=5179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}