How to get your FCCPC license as a Nigerian digital lender

Digital lending is a profitable business that helps people build their dreams. Just like in every country, lending is a highly regulated business and to launch your loan app, you would require a license from the Federal Competition and Consumer Protection Commission (FCCPC).

While this was not the case before 2022, when the activities of unethical lenders became extremely damaging to Nigerians and the economy, FCCPC issued the Limited Interim Regulatory/Registration framework that warranted all digital lending businesses in Nigeria to secure the FCCPC’s license within the prescribed 90-day ultimatum to remain operational without disruption. This Limited Interim Regulatory/Registration Framework for Digital Lending is the Commission’s approach to regulating the digital lending space and making provisions for the requirements for approval/registration to carry out the business of digital lending in Nigeria.

This move by the FCCPC has also aided in regulating lenders’ actions by protecting consumer rights from violation. The FCCPC has also repeatedly assured digital lenders that the licensure is just as much of a protection to digital lenders as it is to consumers. It is pertinent to remember that we’re all first and foremost consumers of products and services.

The FCCPC, formerly spearheaded by CEO Babatunde Irukera, described this regulatory framework as the first of its kind and the first of many steps to establishing a standard that serves as a deterrent to predatory digital lenders.

Getting the FCCPC license is hard but shouldn’t be

The FCCPC license is regarded as one of the toughest licenses to get in Africa. But we’ve done the grunt work of putting together all the necessary requirements and information you need to obtain your mandatory FCCPC license. 

The guide we have written is what lenders who use the Lendsqr loan management software have also used to get their FCCPC license without stress.

Requirements for FCCPC license for digital lenders

• Certified copy of the applicant’s certificate of incorporation (Visit cac.gov.ng).
• A brief description of the lending business of the applicant and, where relevant, their groups.
• Organogram showing role players, nationality and location of key role players and other key officials associated with the business (Where there is dual nationality, both shall be stated and the nationality of primary residence specified)
• Name and address of an official within the lending business who is authorized to accept all correspondence and service on the business’s behalf.
• Details of source(s) of funding, including equity, debt or otherwise(Source information shall include the nature of the instrument, capital injection, identity of the sources and nature of business of the sources. Where the source is an individual, the nationality of the individual.) 
• Interest rate and all applicable fees associated with service, including loan balance calculation method. Find out what we think about interest rates.
• Evidence of membership in any trade or professional association (e.g., the Money Lenders Association).
• List of digital lending apps currently in use or in production. (The Commission shall be notified prior to material modifications of existing apps or introducing new apps.)
• Details of affiliations with other companies, institutions or similar businesses, whether domestic, regional or global.
• Any service level agreements with service providers concerning the operation but excluding administration.
• Evidence of a feedback and complaint resolution mechanism. 
• Terms of use of the applicant’s business.
• Privacy policy of the applicant. Learn about ethical ways you can recover loans as a digital lender. 
• Evidence of data auditing compliance and data auditing report submitted to the Nigerian Data Protection Bureau (NDPB).
• Evidence of tax payments or tax waivers where applicable.
• Money lending license. Read how you can obtain a moneylender’s license.

4 steps to obtain FCCPC license

Step 1: First, download the FCCPC Interim Digital Lending Guidelines form, alias, the “application” form, which you can access here. Then, proceed to the next step.

Step 2: Proceed to the second part of the application, filling the Form DLG 001. In this form, you must input fundamental information such as Name, Physical address, Phone number and email address of the lending business, Website and other general categories. The form includes detailed explanations for each category and clarifies the required information and its relevance.

Step 3: Now that you’ve completed the application form, you must submit the specific documentary requirements mentioned alongside your application. 

Step 4: The final step of this registration process involves a declaration form, AKA Form DLG 002, which is mandatory for two directors of the loan business to sign, indicating that all the information provided is accurate and that the applicant duly noted all regulatory requirements.

3 key points to bear in mind

• Applicants are allowed to register a maximum of five (5) apps only.
• Applicants desirous of registering additional apps shall pay a fee of Five Hundred Thousand Naira (₦500,000) for each additional app.
• All registered Digital Money Lenders must inform the Commission of any change in the details provided during their initial registration within fourteen (14) days of such change. They are required to:
  • Inform the Commission by a letter explaining the nature of the change
  • Re-submit duly filled form (Form 001 and 002)
  • Provide any relevant document in respect of such change

To wrap up

After completing the steps above, submit the filled forms and relevant documents to [email protected]. If you have questions (which we know you will) about this registration process, send us a message at [email protected]. We’ll be more than happy to help.