The Federal Competition and Consumer Protection Commission (FCCPC) has introduced fresh regulations aimed at tackling harassment, data breaches, and other unethical practices by digital lenders in Nigeria.
In a statement issued by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the Commission revealed that the new framework was officially unveiled in Abuja on Wednesday by its Executive Vice Chairman and Chief Executive Officer, Tunji Bello.
According to Bello, Nigerians have long suffered from the unchecked excesses of unregulated lending platforms.
“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,” he emphasized.
Furthermore, he explained that the new rules will serve as a safeguard for borrowers while ensuring accountability in the sector.
“The 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 added.
Significantly, the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, officially took effect on July 21. Made pursuant to Sections 17, 18, and 163 of the FCCPC Act (2018), the rules introduce a comprehensive framework to protect consumers in Nigeria’s rapidly expanding digital credit market.
As part of the provisions, all digital lenders are required to register with the FCCPC within 90 days. Approval, however, will only be granted to operators that meet strict standards of transparency, data protection, and consumer safeguards.
Meanwhile, non-compliant lenders risk facing severe consequences. These include penalties of up to ₦100 million or 1% of their annual turnover, alongside the possible disqualification of directors for as long as five years.
In addition, the new rules prohibit pre-authorised or automatic lending, outlaw unethical marketing strategies, and compel providers to offer clear and accessible loan terms. They also demand that at least one service provider for airtime and data lending must be locally owned.
Moreover, the framework mandates joint registration of partnerships between lenders while restricting monopolistic agreements unless prior approval is obtained from the FCCPC.
To ensure full compliance, the Commission has directed all Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to obtain application forms and guidelines without delay. At the same time, consumers have been encouraged to report unlawful lenders, unfair interest rates, or any privacy violations they encounter.
By introducing these measures, the FCCPC is seeking to strike a balance between fostering financial innovation and guaranteeing consumer rights in Nigeria’s digital lending sector.
