New restrictions have been implemented by the Nigerian government and Google on digital loan apps that are available on the Play Store platform. The aim of the restrictions is to protect users from predatory lending practices.
This development came a few days after the Federal Government of Nigeria licensed 117 digital loan apps to cater for Nigerians.
The new policy will come into effect on May 31 and it also applies to other countries.
Apps will be prohibited by Google from accessing sensitive user data like photos, videos, contacts, precise location data, and call logs.
In a recent statement, Google narrated that the new policy was aimed at tackling issues of misuse of personal data by some loan apps.
The statement read: “Apps that provide personal loans or have the primary purpose of facilitating access to personal loans (i.e., lead generators or facilitators), are prohibited from accessing sensitive data, such as photos and contacts
“This policy applies to apps which offer loans directly, lead generators, and those who connect consumers with third-party lenders”
Also, Google set specific instructions for loan apps operating in Nigeria requesting all in its Play Store to ensure they meet regulatory requirements.
The message read: “To operate as a Personal Loan App in Nigeria, it is mandatory for Digital Money Lenders (DML) to comply with the limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (as may be amended from time to time) set by the Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria.
“DMLs must also furnish verifiable approval letters obtained from the FCCPC.
“Loan Aggregators, on the other hand, are required to provide certification and documentation for their digital lending services, as well as contact information for every partnered DML.
“Additionally, upon request by Google Play, you must submit any supplementary information or documents to demonstrate your compliance with the regulatory and licensing requirements that are applicable to your operations.”
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