Not every company offering loans in Nigeria is licensed to do so. The sector includes fully regulated commercial banks, licensed microfinance banks, FCCPC-registered digital lenders, and at the other end, unlicensed operators that use harassment tactics to collect repayment.
Knowing which category your lender falls into matters before you sign anything.
The main regulatory bodies
Central Bank of Nigeria (CBN)
The CBN licences commercial banks, merchant banks, microfinance banks, development finance institutions, and finance companies. Any institution that accepts deposits or provides credit must hold a CBN licence. You can verify a licence on the CBN website under the "Financial Institutions" section.
Federal Competition and Consumer Protection Commission (FCCPC)
Since 2022, the FCCPC has been responsible for registering digital money lenders, which operate via apps and do not hold full banking licences. The FCCPC maintains a public register of approved digital lenders at fccpc.gov.ng. Apps not on this list are operating without proper authorisation.
Securities and Exchange Commission (SEC)
The SEC regulates investment-linked lending products and some peer-to-peer lending platforms. If you are using a lending platform that also involves investments, check both CBN and SEC registration.
How to verify any lender
For banks and microfinance banks: visit cbn.gov.ng, click "Financial Institutions", and search by name or CBN licence number.
For digital lenders: visit fccpc.gov.ng, go to the "Approved/Registered Digital Lenders" section, and check the current list. This list is updated periodically as new lenders are approved or removed.
Warning signs of unregistered lenders
Unregistered lenders typically share a few common traits. They promise loan approval with no documentation and no credit check. They ask for upfront fees before disbursing any money. Their app permissions request access to your entire contact list, which they use as leverage during collection. And their advertised interest rates, when you calculate the actual annualised cost, turn out to be several hundred percent.
If you encounter any of these, report the operator to the FCCPC using the complaint portal on their website. The commission has successfully removed several illegal apps from Nigerian app stores in recent years.
CBN-licensed lenders on this site
All lenders listed on CoolFinance.com.ng are either CBN-licensed or registered with the FCCPC. We verify licensing status before including any provider in our comparison. If you notice an entry that appears outdated or inaccurate, use the contact page to let us know.