How to get FCCPC approval as a Digital Lending business in Nigeria
All the information you need to submit an FCCPC approval application in 2022
On August 16, 2022, the Federal Competition and Consumer Protection Commission (FCCPC) issued a Limited Interim Regulatory/Registration Framework for Digital Lending in Nigeria. This framework requires digital lending businesses in Nigeria to obtain the FCCPC’s approval within 90 days of the order to be able to continue their operations.
This move by the FCCPC is part of its ongoing investigation into the digital money lending industry concerning reported violations of consumer rights. As part of the FCCPC’s directive, payment companies in Nigeria have been instructed to require all Digital Lending and Consumer Finance businesses on their platforms to obtain this approval within 90 days.
In this article, we’ll break down what the FCCPC directive might mean for your Digital Lending business, and the steps you need to take to continue to operate without disruption.
What types of businesses must comply with this directive?
The exact wording of the directive is that it applies to Digital Lending and Consumer Finance businesses. If you’re in the business of lending funds, there is a high likelihood that this directive applies to you.
If you’re unclear as to whether the directive applies to your business model, we encourage you to work with your legal team, contact the FCCPC, or reach out to your regulator for clarification.
What does this directive mean for your business?
If you’re a Paystack merchant, you can continue to use Paystack to power payments for your business as of today.
However, as a business that provides digital lending services to customers in Nigeria, you should start the process to obtain the FCCPC’s approval as soon as possible.
Obtaining this approval indicates that your business is compliant with the FCCPC’s framework. This would also enable Paystack to continue to power your payment transactions after the 90-day period.
How do you get approval?
First, you need to download and fill out the FCCPC Interim Digital Lending Guidelines form, which you may access through this link. From here on, we’ll call this ‘the application form.’ The application form is in three parts.
- Form DLG 001
The first part of the application is Form 001, which collects standard information like Name, Address, Website, and other general categories. The form provides explanatory notes on the meaning of each category, and the nature of the information you’re to share.
- Documentary Requirements
The second part of the form outlines specific documents you must submit with your application.
The required documents are:
1. Certified copy of the certificate of incorporation of the applicant
2. A brief description of the business and where relevant, their groups
3. An organogram showing role players and their location, and any operational approving authorities or person
4. Name and address of a person within the business who is authorized to accept all correspondence and accept service on behalf of the business
5. Evidence of membership in any trade or professional associations
6. Any service level agreements with any service providers with respect to operations but excluding administration
7. Evidence of a feedback and complaint resolution mechanism
8. Evidence of tax payments or tax waivers, where applicable
9. All applicable fees associated with service
- Declaration/Form DLG 002
The final section is a declaration form for two Directors to sign, indicating that the information you have provided is accurate and that your business complies with all applicable regulatory requirements.
Fill the FCCPC's Interim Digital Lending Guidelines form
Fill the FCCPC's form to obtain approval for your Digital Lending or Consumer Finance business.Access the form
Once this is complete, you may send the completed forms and documentation to [email protected].