{"id":5316,"date":"2022-08-24T12:30:39","date_gmt":"2022-08-24T12:30:39","guid":{"rendered":"https:\/\/koriatlaw.com\/?p=5316"},"modified":"2022-08-24T12:30:39","modified_gmt":"2022-08-24T12:30:39","slug":"koriats-update-on-fintech-lending-law-in-nigeria-august-2022","status":"publish","type":"post","link":"https:\/\/koriatlaw.com\/2026\/2022\/08\/24\/koriats-update-on-fintech-lending-law-in-nigeria-august-2022\/","title":{"rendered":"KORIAT\u2019S UPDATE ON FINTECH LENDING LAW IN NIGERIA (AUGUST 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\"><strong>Introduction<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/businessday.ng\/business-economy\/article\/nigerias-consumer-lending-expected-to-rise-by-21-in-2021\/\">Digital\nlending is on a steady rise in\nNigeria and has potentially risen to N1.7 trillion as at December 2021<\/a>\nfollowing the adverse effect of Covid-19 pandemic, the rising interest rates,\ninflation and unemployment rates. However, the regulatory framework for digital\nlending in Nigeria is still at a developing stage and lack of robust regulation\nhas provided a fertile ground for malpractices amongst some of the existing digital\nlenders in the country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some online Moneylenders have continuously violated consumer privacy rights, some issue unfair\nlending terms to\nconsumers and undertake unethical loan repayment\/recovery practices, all of which have caused\ngreat concerns for not just the consumers but also the regulators. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the forefront of the campaign against lending malpractices in Nigeria\nis the Federal Competition and Consumer\nProtection Commission (\u201cFCCPC\u201d), a federal agency created to protect\nconsumers against unfair business practices in a\nbid to Nigeria. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/koriatlaw.com\/2026\/koriats-update-on-fintech-lending-law-in-nigeria-may-2022\/\">We\nhave previously reported the efforts of the FCCPC against unfair digital\nlenders.<\/a> In our previous update\non fintech lending law in Nigeria of <a href=\"https:\/\/koriatlaw.com\/2026\/koriat-update-on-fintech-lending-law-in-nigeria-january-2022\/\">January\n2022<\/a>, <a href=\"https:\/\/koriatlaw.com\/2026\/koriats-update-on-fintech-lending-law-in-nigeria-march-2022\/\">March\n2022<\/a>, and <a href=\"https:\/\/koriatlaw.com\/2026\/koriats-update-on-fintech-lending-law-in-nigeria-may-2022\/\">May\n2022<\/a>, we gave an up to date report on steps taken by\nthe FCCPC through its Joint\nCommittee (comprising\nfederal regulators and law enforcement agencies) to curb the menace and unfair practices\nperpetuated by unregistered, unlicensed and\nunethical digital lenders in Nigeria. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some of the actions taken so far include: aggressive supervisions,\nshutting down of illegal businesses,\nissuing interim regulations, obtaining court orders to freeze bank accounts of\ndefaulters, engaging&nbsp;mobile applications companies (like Google\u2019s Play Store and\nApple Store) to shut down certain mobile applications of defaulters and directing commercial banks to freeze the\nbank accounts of fintech companies that are \u201cinfringing and abusive\u201d in their\noperations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this Update, we examined the recent efforts by FCCPC to create balance and improve the business of money lending in Nigeria and made comments on the\npotential effects of the regulatory drives of the FCCPC. <em><a href=\"https:\/\/koriatlaw.com\/2026\/key-notes-on-how-to-set-up-a-money-lender-company-in-nigeria\/\">You\nmay also read HERE about to set up a Digital Lending Company in Nigeria.<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FCCP\u2019<\/strong><strong>s<\/strong><strong> Regulatory Actions against <\/strong><strong>Illegal Digital<\/strong><strong> Lend<\/strong><strong>ing <\/strong><strong>Companies<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><em>Government Blocks Mobile Payment, Telecom Network Access to<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Rogue<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Digital<\/em><\/strong><strong><em> Lenders<\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Digital lending regulation has not been easy in Nigeria because of the\ndearth of regulatory framework and the fact that most of the operators do their\nbusinesses remotely which enables them to easily circumvent regulatory\nsanctions. However, the FCCPC has stepped up its game and devised a new medium to\ndiscourage the continued operations of illegal and blacklisted digital lenders.\nThe new move of the FCCPC is by blocking the affected digital lenders\u2019 access\nto mobile payment and telecommunication network infrastructure in the country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The FCCP recently issued a directive to all Fintech payment companies in Nigeria including Flutterwave, Opay, Paystack and Monify\nto stop\nproviding payment or transaction services to illegal or blacklisted digital lenders. Likewise, Mobile Network Operators (\u201cMNOs\u201d) were equally directed to stop providing server\/hosting or other key services such as connectivity to\nthe said unlicensed\nand blacklisted digital lenders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the above approach, it would be extremely difficult for\nnon-compliant digital lenders to continue to operate in Nigeria. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><em>&nbsp;<\/em><\/strong><strong><em>The R<\/em><\/strong><strong><em>egulatory <\/em><\/strong><strong><em>E<\/em><\/strong><strong><em>nforcement guideline on Money lending in Nigeria<\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For a while now,\nthe FCCPC has intimated the\npublic of its efforts to issue a temporary regulatory framework for digital\nlending in Nigeria. Recently, in exercise of the\npowers conferred upon it by sections 17, 18 and 163 of the Federal Competition\nand Consumer Protection Act, 2018 (\u201c<strong>the\nFCCP Act<\/strong>\u201d), and all other powers enabling it in that behalf, the FCCPC issued\nthe <strong>Limited Interim\nRegulatory\/Registration Framework and Guidelines for Digital Lending, 2022 (\u201cGuidelines\nfor Digital Lending 2022\u201d)<\/strong>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to FCCPC, the Guidelines for Digital Lending\n2022 was developed and adopted by the Joint Regulatory and Enforcement Task\nForce as a temporary step to establishing a clear regulatory framework for the\nlending space with the aim of\nensuring\nmandatory registration of digital lenders with the FCCPC and provisions for registration requirements and additional regulatory approval of the FCCPC to carry out the business of digital\nlending in Nigeria.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The procedure for\nregistration with the FCCPC is by filling and submitting two Registration Forms\nwith some documentary requirements. The Registration Forms are:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>i. <\/strong><strong>Form DLG 001<\/strong><strong> (Explanatory Notes &amp;\nProvisional Guidance to Interim Digital Lending Guidelines Form 001) <\/strong>which is required to be completed and submitted to the FCCPC by the applicant company. The Form DLG 001 requires the applicant company to disclose to FCCPC some information which includes\nthe registered\nname of the digital money lender as well as other brand\nnames for its digital presence;\nphysical address; contact details; identity of promoters, directors and initial\nkey role players; affiliated companies; source(s)\nof funding; proposed interest rate regime; service providers and service level\nagreements; list of all Apps in the business operations or intended for\noperation; etc.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ii. <\/strong><strong>Form\nDLG 002<\/strong><strong> (Declaration for Digital Lending Business in Nigeria Form 002)<\/strong> which contains\na declaration by the company to the effect that its business is legitimate, lawful and will operate in continuing compliance\nwith any prevailing and applicable laws;\nthat\nthe company has complied with all applicable regulatory requirements and or approvals for any\ntechnology to be deployed; that the capital of the business is not of any\nillegal source; and have complied with all provisions of laws on non-involvement in illegal activity, privacy rights and data protection, and anti-money laundering regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The list of documents that are\nrequired to accompany a digital lender\u2019s application to the FCCPC are as\nfollows:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">i. Certified copy of the certificate of incorporation of the applicant\ncompany;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ii. A brief description of the business of the applicant company and\nwhere relevant, their groups;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">iii. Organogram showing role players and location of key role players\nand any operational approving authorities\/person;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">iv. Name and address of a person within the business who is authorized\nto accept all correspondence and accept service on behalf of the business;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">v. Evidence of membership in any trade or professional associations;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">vi. Any service level agreements with any service providers with respect\nto operations but excluding administration;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">vii. Evidence of feedback and complaint resolution mechanism;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">viii. Evidence of tax payments or tax waivers where applicable;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ix. All applicable fees and charges associated with service;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">x. FCCPC Interim Digital Lending Guidelines Form 002 (Declaration for\nDigital Lending Businesses in Nigeria)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Comments on the Guidelines for Digital Lending 2022<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is noteworthy that the Guidelines for Digital Lending 2022 has no\ncommencement date and it is unclear if the operation of the Guidelines is to be effective immediately. Also, it is not clear what timeframe the\nexisting digital lenders have to comply with the required registration with the\nFCCPC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although section 163(1)(c) of the FCCP Act empowers the FCCPC to make\nregulations on fees, administrative penalties, charges or levies and such other\nrelated matters, however, there is neither a clear provision in the Guidelines\nfor mandatory registration with FCCPC nor a specified penal consequence for\nfailure of any digital lender to register with the FCCPC. This may, in our view,\nlead to non-compliance by digital lenders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Apart from its potential to spark off a jurisdictional dispute between\nFCCPC and the relevant State Government Agencies which are empowered, by State laws\nto licence and regulate money lenders in Nigeria, another issue with the Guidelines\nfor Digital Lending 2022 is that it remains unclear as to whether the\nregistration with the FCCPC is required before the digital lender could apply for\noperational lending licence of a State Government Agency and whether FCCPC approval\nis mandatory for lending business in Nigeria. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Undoubtedly, the Guidelines for Digital Lending 2022 has introduced\nadditional <a href=\"https:\/\/koriatlaw.com\/2026\/key-notes-on-how-to-set-up-a-money-lender-company-in-nigeria\/\">requirements\nfor setting up a digital lending company in Nigeria<\/a> and increased the\nnumber regulatory approvals and reporting obligations for digital lenders. It\nis no gainsaying that the Guidelines would naturally increase the cost of doing\ndigital lending business in the country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">READ ALSO:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><a href=\"https:\/\/koriatlaw.com\/2026\/how-to-set-up-money-lending-companies-in-ghana\/\">HOW\nTO SET UP A DIGITAL LENDER IN GHANA<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><a href=\"https:\/\/koriatlaw.com\/2026\/ten-10-frequently-asked-questions-on-money-lenders-licence-in-nigeria\/\">TEN\n(10) FAQs ON MONEY LENDING BUSINESS IN NIGERIA<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">****************************************************************************<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>About\nKoriat &amp; Co.<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Koriat &amp; Co. is a commercial law firm in with\nfocus on advisory and support services for company incorporation and business licences\nin Nigeria, Ghana, Kenya and Rwanda.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We have successfully incorporated and licensed over\nten (10) digital lending companies in Lagos and Abuja, Nigeria and are available\nto service our clients who are in seeking to do business in Ghana, Kenya and\nRwanda.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Digital lending is on a steady rise in Nigeria and has potentially risen to N1.7 trillion as at December 2021 following [&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":[12,14,67,249,124],"class_list":["post-5316","post","type-post","status-publish","format-standard","hentry","category-publications","tag-caccbnbusiness-licencecompany-registrationfinance-company-koriat-lawyers-koriat-and-coloan-agreementmicro-creditmicrofinance-lawyersmoney-lendersme-lawyers-business-lawyers","tag-financecompany-cbn-koriatlawyers-koriatandco-smelawyers-businesslawyers-microfinancelawyers","tag-fintech","tag-fintech-lawyer-in-nigeria","tag-fintech-lending"],"_links":{"self":[{"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/posts\/5316","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=5316"}],"version-history":[{"count":0,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/posts\/5316\/revisions"}],"wp:attachment":[{"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/media?parent=5316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/categories?post=5316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/koriatlaw.com\/2026\/wp-json\/wp\/v2\/tags?post=5316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}