Google Introduces Conditions for Loan Apps in Nigeria


In a move to protect Nigerians from predatory lending practices, of some loan apps in Nigeria, the federal government in collaboration Google has introduced new stringent conditions to digital loan apps on its Play Store. 

This is coming a few days after the Federal Government of Nigeria through Federal Competition and Consumer Protection Commission, licensed 173 digital loan apps to serve Nigerians.

Google new policy, which comes into effect from May 31, will restrict loan apps from accessing sensitive user data such as photos, videos, contacts, precise location data, and call logs, Techcrunch reported.

Google in a statement sent to loan apps said that its new policy is aimed at addressing issues of misuse of personal data by some loan apps

“Apps that provide personal loans, or have the primary purpose of facilitating access to personal loans (i.e., lead generators or facilitators), are prohibited from accessing sensitive data, such as photos and contacts 

"This policy applies to apps which offer loans directly, lead generators, and those who connect consumers with third-party lenders."

For loan apps that operate in Nigeria, Google set specific instructions directing all in its Play Store to ensure they meet Nigerian government regulatory requirements.

"To operate as a Personal Loan App in Nigeria, it is mandatory for Digital Money Lenders (DML) to comply with the limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (as may be amended from time to time) set by the Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria.

"DMLs must also furnish verifiable approval letters obtained from the FCCPC. Loan Aggregators, on the other hand, are required to provide certification and documentation for their digital lending services, as well as contact information for every partnered DML.

"Additionally, upon request by Google Play, you must submit any supplementary information or documents to demonstrate your compliance with the regulatory and licensing requirements that are applicable to your operations."

See full list of approved 173 Digital Loan Apps in Nigeria 

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