Introduction

The rise of digital lending in Nigeria has made it incredibly easy to access quick loans using just a smartphone. However, this convenience comes with a serious risk: loan app scams.

From apps that demand excessive interest rates to those that harass your contacts and steal your personal data, unregulated loan apps are everywhere. To protect yourself, it’s crucial to borrow only from loan apps approved by the Central Bank of Nigeria (CBN) and monitored by regulatory authorities like the Federal Competition and Consumer Protection Commission (FCCPC).

But how do you spot legitimate apps from fraudsters?

This guide will show you how to identify CBN-approved loan apps, recognize red flags of scam lenders, and borrow safely in Nigeria’s digital economy.

Why You Should Avoid Unapproved Loan Apps

Unlicensed loan apps often:

• Charge exorbitant interest rates

• Access and abuse your phone contacts

• Send defamatory messages to your friends and family

• Threaten, harass, or blackmail borrowers

• Lack proper data protection policies

• Operate under fake or changing business names

• Have no customer service or physical address

Borrowing from such platforms exposes you to identity theft, privacy invasion, and emotional distress. Worse still, you may be dealing with criminal groups posing as financial institutions.

Who Regulates Loan Apps in Nigeria?

Several government agencies oversee digital lenders in Nigeria:

1. Central Bank of Nigeria (CBN) – licenses and supervises financial institutions.

2. Federal Competition and Consumer Protection Commission (FCCPC) – ensures ethical conduct and consumer protection.

3. National Information Technology Development Agency (NITDA) – protects user data and digital privacy.

4. Economic and Financial Crimes Commission (EFCC) – investigates fraud and financial crimes.

The FCCPC now leads the registration and regulation of digital lenders in collaboration with the CBN and NITDA. Apps that meet compliance standards are placed on the FCCPC-Approved Loan Apps List.

How to Identify CBN-Approved or FCCPC-Licensed Loan Apps

1. Check the FCCPC’s List of Approved Loan Apps

Start by visiting the FCCPC’s official website to see the current list of authorized digital lenders:
https://www.fccpc.gov.ng

They provide a downloadable list with:

• The app’s name

• The company’s real name (RC number)

• Contact details

• Status (fully approved or conditionally approved)

Note: Any app not listed here is not authorized to operate in Nigeria.

2. Verify the Company’s Registration with CAC

CBN-approved loan apps must be registered businesses in Nigeria. Use the Corporate Affairs Commission (CAC) portal to confirm:

https://search.cac.gov.ng

Search using the app’s company name or RC number (from the FCCPC list). This helps ensure the app is legally recognized.

3. Check for BVN and NIN Integration

Legit loan apps comply with CBN’s Know-Your-Customer (KYC) rules. They typically request:

• Bank Verification Number (BVN)

• National Identification Number (NIN)

• Full name, date of birth, address

• Bank account details

If a loan app allows you to borrow with just a phone number and no identity verification, that’s a major red flag.

4. Review App Permissions Before Installing

On installation, pay close attention to the app permissions it requests. Red flags include:

   Requests to access:

• Your contact list

• Call logs and SMS

• Your gallery or media files

• Location at all times

CBN-approved and FCCPC-regulated apps do not require excessive permissions. They follow Nigeria’s Data Protection Act and ask only for essential data.

5. Evaluate Customer Reviews and Ratings

Visit the Google Play Store or Apple App Store and search the app’s name. Look out for:

 Positive reviews mentioning:

• Transparency

• Good customer service

• Reasonable interest rates

• No harassment

 Negative reviews that mention:

• Contact harassment

• Fake names or double charges

• Defamation or threats

• Sudden account lockouts

Consistent bad reviews often indicate a scam or unregulated app.

6. Examine the Interest Rates and Loan Terms

Approved lenders usually provide:

• Clear interest rates (20%–35% APR)

• Defined repayment periods (7–180 days)

• Transparent fees and charges

Scam apps may advertise:

• Zero interest rates, then add hidden fees

• Fake promotions to lure victims

• Confusing repayment terms

If the offer sounds too good to be true, it probably is.

7. Confirm the Loan App’s Contact Details

Legit loan apps provide:

• A working customer support number

• A functional email address

• A physical business address

No contact information or vague details like “Lagos, Nigeria” are warning signs.

List of Some FCCPC-Approved Loan Apps (As of 2025)

Here are a few examples of approved apps to consider:

Note: Always cross-check with the FCCPC for the latest updates.

Red Flags: How to Spot Scam Loan Apps

Be alert for these signs of shady loan apps:

No registration with CBN or FCCPC Unrealistic interest-free offers
Excessive app permissions
Unavailable or fake customer support
Harassment via calls or WhatsApp
Threats to contact friends and family
Multiple names or changing app identity

If you encounter any of these, do not download or use the app.

What to Do If You’ve Already Borrowed from a Scam App

1. Repay What You Can

If you borrowed money and agreed to terms (even if unfair), try to repay what you owe to avoid legal escalation.

2. Report the App

Report to:

• FCCPC: contact@fccpc.gov.ng

• NITDA (for data abuse): info@nitda.gov.ng

• Google Play Store – report the app as inappropriate

3. Document Any Harassment

Save messages, calls, or defamation as evidence. This can support legal or regulatory action.

4. Warn Others

Share your experience online or in WhatsApp groups to educate others. The more people are aware, the fewer fall into the trap.

How to Borrow Safely in Nigeria

Only borrow from approved, regulated apps
Read loan terms carefully before accepting
Repay loans on time to maintain a good credit score
Monitor your credit report via CRC, FirstCentral, or CreditRegistry
Never give access to your contacts or sensitive files

Conclusion

Not all loan apps in Nigeria are legitimate. Many are unregulated platforms looking to exploit unsuspecting users. To protect yourself, always ensure the loan app you’re using is approved by the FCCPC and compliant with CBN regulations.

Borrow responsibly, stay informed, and never compromise your privacy or dignity for a quick loan.

Key Takeaways

• Use only CBN-approved or FCCPC-registered loan apps

• Verify company registration on the CAC website

• Watch out for apps that request excessive permissions

• Avoid loan apps that threaten or contact your family and friends

• Always review app ratings, loan terms, and customer service options

• Report fraudulent apps to the appropriate authorities