Loan apps on the Play Store are set to lose access to users’ contacts and photos starting from May 31, 2023, as part of Google’s latest policy update. The Nigerian Federal Government has announced its intention to enforce this policy, which aligns with efforts to protect customers’ privacy from intrusive practices by loan app companies.

In recent times, the Federal Competition and Consumer Protection Commission has registered 170 out of the 200 loan apps operating in Nigeria, taking decisive actions to address privacy violations. Google’s April 2023 policy update aims to provide relief to loan app users in Nigeria and other regions where aggressive loan retrieval methods have become prevalent.

According to the policy preview, apps that offer or facilitate personal loans will no longer be allowed to access user contacts or photos. In addition, personal loan apps targeting users in Pakistan will need to submit country-specific licensing documentation to demonstrate their compliance with regulatory requirements.

This policy update follows Google’s earlier announcement of updates to its Developer Programme Policy, which mandates digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya to conform to regulatory rules or face removal from the Play Store by January 31.

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The Chief Executive Officer of the FCCPC, Babatunde Irukera, has commended Google’s efforts to institutionalize regulatory policies, stating that it aligns with the FCCPC’s priorities in ensuring proper regulatory oversight of the industry.

The FCCPC has recently approved 173 digital lending applications to operate in Nigeria, with the ‘Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022’ serving as a prerequisite for registration and approval. This regulatory effort aims to curb harassment of Nigerians through defamatory messages sent by loan apps to their contacts.

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Google’s policy also prohibits apps that promote personal loans requiring repayment in full within 60 days, but many loan apps in Nigeria do not adhere to this, posing risks of data leaks and privacy breaches. Irukera emphasized that the registration drive by the FCCPC aims to protect Nigerians’ privacy by restraining loan apps from unauthorized access to sensitive information and abusive loan recovery practices.