Nigeria’s digital lending industry is entering a new phase, one that will reshape how millions of people access quick online credit. The Federal Competition and Consumer Protection Commission (FCCPC) has introduced a new rule that limits every digital lender to a maximum of five apps. It is a major shift, especially in a market where some operators run twice that number under different names.

The change, as reported by Nairametrics, is part of a wider clean-up effort aimed at fixing a sector that has grown too fast and with too little control. Over the past few years, Nigerian borrowers have complained about harassment, hidden charges, and the misuse of personal data. Regulators have struggled to track ownership, as many companies operate approved apps in the daylight and unapproved ones in the shadows.

The Commission is now drawing a line.

For years, the digital lending space has been messy. Many lenders created multiple apps for different purposes: one for small loans, another for business loans, one for savings, one for “urgent” credit, and sometimes two or three more hidden behind new names. Each app came with its own style, its own rules, and its own reach. For consumers, it looked like variety; for regulators, it was chaos.

The FCCPC said this new cap will reduce fragmentation and make accountability clearer. When a borrower complains about data abuse or harassment, regulators need to know exactly which company is behind the app. With fewer apps in circulation, the Commission can better protect users and monitor compliance.

Why some lenders rely on multiple apps

Industry players have different explanations for why they use so many platforms. The President of the Money Lenders Association, Gbemi Adelekan, said lenders built various apps to target different customer groups, from nano-loans to business credit. But he also admitted that this system makes oversight difficult, and the Commission is now stepping in to simplify that landscape.

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A senior industry source, however, went further. He said some companies register one or two apps with the FCCPC to appear compliant, but quietly run several more where the real malpractice happens. He added that the new five-app cap will force some operators to shut down these unregulated platforms for good.

The Commission introduced a revised approval fee structure. Approval for two apps falls under the standard fee. Any lender seeking to register more must now pay an additional amount for each extra app, up to the allowed limit of five. The aim is to discourage operators from piling up apps simply to multiply customer reach while avoiding scrutiny.

This new cost implication pushes companies toward consolidation. Instead of scattering customers across seven or eight different apps, lenders will now have to merge services and streamline operations. The FCCPC has also warned that hiding or failing to declare any app can lead to licence revocation, approval denial, or even delisting through Google and Apple.

What this means for the millions of Nigerians who depend on digital loans

The new cap will affect borrowers in different ways. Some will notice that a few familiar apps begin to disappear or merge. Others may face short pauses in service while their lenders update systems, migrate customers, or shut down old platforms. These adjustments are expected as operators rush to meet the January deadline.

In the long run, the Commission believes the change will benefit users. With fewer apps to police, regulators can track how lenders collect data, charge interest, and recover overdue loans. It also reduces the risk of borrowers unknowingly dealing with unlicensed apps hidden behind new names and logos.

The FCCPC had originally set an October deadline for all digital lenders to register. The rush to comply, as reported by Nairametrics, pushed approvals to four hundred and ninety-two registered lenders. The Commission later extended the deadline to early January to allow full compliance with the updated requirements.

To support this transition, the FCCPC released additional guidelines under the Digital, Electronic, Online, and Non-Traditional Consumer Lending Regulations. These guidelines provide clarity on operating rules, documentation, and disclosure requirements for all lending apps in the country.

The digital lending space is not going away. Nigerians rely on these platforms every day, especially those who cannot access traditional bank credit. But the era of multiple anonymous apps is ending. The Commission wants lenders to be more accountable, easier to track, and safer for consumers. What happens next will determine how Nigerians borrow in the years ahead.

Meiza Nigeria