The Federal Competition and Consumer Protection Commission (FCCPC) has rolled out landmark regulations to rein in exploitative practices, privacy breaches, and abusive recovery tactics by digital lenders operating in Nigeria.
This was contained in a statement signed by the Commission’s Director of Corporate Affairs, Mr Ondaje Ijagwu, on Wednesday, announcing the commencement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025.
The statement reads partly: “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.”
“The regulations, which came into effect on July 21, 2025, establish a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.”
“Under its provisions, all digital lenders must register with the FCCPC within 90 days of commencement. Approval is dependent on meeting consumer protection, data compliance, and transparency standards. Non-compliant operators face sanctions, which may include fines of up to ₦100 million or 1% of turnover, as well as potential disqualification of directors for up to five years.”
The Executive Vice Chairman/Chief Executive Officer, Mr Tunji Bello, said the move was necessary to safeguard consumer rights and restore sanity to the digital lending market. He explained that the regulations mandate transparency, fairness, ethical loan recovery, responsible lending, and local ownership requirements for service providers offering airtime and data credit.
The FCCPC stressed that the rules prohibit pre-authorised or automatic lending, compel clear disclosure of loan terms, and ban unethical advertising and monopolistic agreements without prior approval from the Commission.
It added that Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners are all covered under the framework, which is backed by Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018).
The Commission urged consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations through its official portal: lenderstaskforce@fccpc.gov.ng.
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