… issues new rules to tackle abuses in digital lending
The Federal Competition and Consumer Protection Commission (FCCPC) has mandated all digital lenders operating in Nigeria to register with the Commission within 90 days, warning that failure to comply will attract sanctions, including fines of up to ₦100 million or 1% of annual turnover, as well as possible disqualification of directors for up to five years.
The directive is contained in the newly gazetted Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, issued by the FCCPC to address persistent consumer complaints against digital lenders.
In a statement signed by Ondaje Ijagwu, Director, Corporate Affairs, the regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), primarily safeguards consumers by establishing a comprehensive framework.
The regulations, which came into effect on July 21, 2025, were announced in Abuja by Tunji Bello, Executive Vice Chairman/Chief Executive Officer of the FCCPC. He stressed that the Commission is determined to end exploitative practices, data privacy violations, and harassment of consumers by unregulated digital lending operators.
“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 rights and dignity of consumers, or the rule of law.
“These Regulations provide the legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” Bello stated.
The new rules provide a legal framework that requires digital lenders to operate transparently, disclose loan terms clearly, adopt ethical recovery methods, and respect consumer privacy.
They also prohibit pre-authorised or automatic lending, unethical marketing, and anti-competitive agreements, while mandating at least one locally owned service provider for airtime and data lending services.
“This framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under the oversight of the FCCPC. It is a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector,”
All digital lenders, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and their service partners, are required to jointly register with the FCCPC and obtain approval before operating. Non-compliant operators risk severe penalties, including monetary fines, deregistration, or director bans.
The Commission urged consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations via its complaint portal at lenderstaskforce@fccpc.gov.ng.
