The Federal Government of Nigeria has taken steps to ensure the protection of customers’ privacy by loan app firms.
As part of the policy, digital money lenders in Nigeria will have to comply with regulatory rules or risk being taken down by January 31.
Additionally, loan apps on Play Store will no longer be able to access user contacts or photos from May 31, 2023.
The move follows Google’s April 2023 policy updates, which aim to prevent crude loan retrieval methods employed by loan apps.
The Federal Competition and Consumer Protection Commission (FCCPC) recently approved 173 digital lending applications to operate in Nigeria, with 119 receiving full approvals and 54 receiving conditional approvals.
The commission’s “Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022” is an attempt to regulate the digital lending space and make registration and approval a prerequisite for companies seeking to operate in the space.
The new policy is a welcome development and shows that Google is institutionalizing its regulatory policy, according to the Chief Executive Officer of the FCCPC, Babatunde Irukera.
He added that it is important for proper regulatory oversight of the industry, and he commended Google for taking a position that is consistent with the position of regulators.
Loan apps have been harassing Nigerians by sending defaming messages to their contacts, exposing many to confidential data leaks.
The move to enforce Google’s new policy is an important step towards protecting users’ privacy in Nigeria. The FCCPC’s recent registration drive aims to restrain the kind of information loan apps are able to pull off people’s phones and what they are able to do with that information, especially with respect to making contact with people on the contact list and their loan recovery practices.
Overall, the new policy update from Google is a positive development that will provide respite for loan app users in Nigeria and other countries that have become accustomed to crude loan retrieval methods.
The move to regulate the digital lending space and make registration and approval a prerequisite for companies seeking to operate in the space is also a step in the right direction.
It is hoped that these measures will go a long way toward protecting customers’ privacy in Nigeria.
