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The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new rules to rein in abusive practices in Nigeria’s fast-growing digital credit market.
Tunji Bello, executive vice chairman/CEO of FCCPC, announced the commencement of the rules in Abuja.
He stated the move signals the end of impunity in the sector. “For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders.
“These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers or the rule of law,” Bello said.
He noted that the rules provide legal tools to hold violators accountable and promote responsible digital finance, stressing that no Nigerian should be harassed, defamed, or pushed into unsustainable debt.
The Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulation (DEON Consumer Lending Regulation) 2025, which came into effect on July 21, sets out a comprehensive framework to curb exploitative loan recovery tactics, harassment, data privacy violations, and anti-competitive practices by some digital lenders and their partners.
The regulations, issued under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), aim to safeguard consumer rights by mandating transparency, fairness, responsible conduct, and accessible redress mechanisms, with strict oversight by the FCCPC.
A statement signed by Ondaje Ijagwu, director of Corporate Affairs, said the regulations apply to all unsecured consumer loans offered electronically, online, via mobile channels, or through other non-traditional platforms.
Key provisions include compulsory registration of all digital lenders within 90 days, prohibition of pre-authorised or automatic lending and mandatory disclosure of clear and accessible loan terms.
It also includes a ban on unethical marketing and exploitative recovery practices and a requirement for local ownership in airtime and data lending services.
Mandatory joint registration of lender partnerships and a ban on monopolistic agreements without FCCPC approval were also included.
Sanctions for non-compliance include fines of up to N100 million or 1 percent of turnover, alongside potential disqualification of company directors for up to five years.
The FCCPC has also urged Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to apply for registration via its website, fccpc.gov.ng, and adhere to compliance requirements.
“Consumers are encouraged to report unlawful lenders, unfair interest rates, and privacy breaches to the commission through its complaint portal.”
