Loan apps on the Google Play Store will soon have to comply with new policy updates, with their ability to access user contacts or photos set to be revoked as of May 31, 2023.
The Nigerian government has taken steps to protect the privacy of customers, in line with the move by Google. In fact, the Federal Competition and Consumer Protection Commission has registered only 170 out of 200 loan apps currently operating in Nigeria, as it seeks to clamp down on apps that invade users’ privacy. Google’s latest policy update is set to provide relief for loan app users, who have been exposed to crude loan retrieval methods employed by many apps.
Google’s latest policy update requires personal loan apps targeting users in Pakistan to submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans. This update is part of Google’s Developer Programme Policy, which mandates digital money lenders in several countries, including Nigeria, to conform to regulatory rules or risk being taken down by January 31.
Google’s latest policy update requires personal loan apps targeting users in Pakistan to submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans. This update is part of Google’s Developer Programme Policy, which mandates digital money lenders in several countries, including Nigeria, to conform to regulatory rules or risk being taken down by January 31.
Only digital money lenders that have adhered to and completed the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, and obtained a verifiable approval letter from the FCCPC will be allowed on the Play Store in Nigeria.
The Chief Executive Officer of the FCCPC, Babatunde Irukera, welcomed Google’s latest policy update, stating that it shows the firm is institutionalizing its regulatory policy. The FCCPC recently approved 173 digital lending applications to operate in Nigeria, 119 of which received full approvals while 54 received conditional approvals. The commission’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022 is aimed at regulating the digital lending space, making registration and approval a prerequisite for companies seeking to operate in the space.
Loan apps in Nigeria have been known to harass users by sending defaming messages to their contacts, resulting in the government taking a strong stance to protect the privacy of Nigerians. Google’s latest policy update is set to provide much-needed relief for loan app users and aligns with the Nigerian government’s efforts to regulate the industry. While Google’s policy states that it does not allow apps that promote personal loans requiring repayment in full in 60 days or less from the date the loan is issued, many loan apps in Nigeria do not adhere to it, exposing users’ confidential data.
