Federal Competition and Consumer Protection Commission (FCCPC), the regulatory authority responsible for, among other things reviewing economic activities in Nigeria that are anti-consumer and activities that might affect the economic interest of consumers recently published a Limited Interim Regulatory/Registration Framework for Digital Lending. The FCCPC which has powers to regulate and seek ways of removing or eliminating from the market, controversial technologies has created a form required to be duly completed, submitted and accompanied my required documents.
Federal Competition and Consumer Protection Commission
The FCCPC requires the following information from Digital lending startups
- Name of the digital money lender
- Physical address
- Telephone number
- Email Address
- Identity and nationality of initial promoters and directors
- Sources of funding including – equity, debt, etc
- Business affiliations
- Consultants or Agents
- Proposed interest rate regime and loan balance calculation methodologies
- Any license authorizing business to operate
- List of applications currently deployed or to be deployed
The FCCPC also requires certain other documents to be attached to this registration. This includes:
- Incorporation documents
- Tax clearance certificates or exemptions
- Organograms among others
The registration framework applies immediately and becomes enforceable immediately. It requires permission to proceed in digital lending and it provides a limited moratorium period for existing businesses to comply in order to continue in digital lending. Applicants are also required to authorize a representative to act on its behalf and if an authorized representative ceases to act for the Applicant, the Commission must be advised of it immediately .
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.