By Olakunle Oke
The Federal Competition and Consumer Protection Commission (FCCPC) has introduced fresh regulations aimed at sanitising Nigeria’s digital lending industry, addressing longstanding consumer grievances over harassment, data privacy violations, and aggressive loan recovery tactics.
The new rules, titled the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulation 2025 (DEON Consumer Lending Regulation), came into effect on July 21, establishing a robust framework for transparency, equity, data protection, and effective consumer remedies in the burgeoning digital credit space.
These regulations are grounded in Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), granting the Commission authority to register, oversee, and penalise digital lenders across the nation.
In a formal announcement in Abuja on Wednesday, FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, emphasised that the guidelines mark the end of unchecked malpractices in the sector.
“For far too long, Nigerians have suffered from harassment, data breaches, and unethical conduct by unregulated digital lenders,” Bello declared, adding that the regulations set firm boundaries where innovation must align with consumer rights and legal standards.
He further noted that the framework equips the Commission with necessary legal instruments to enforce accountability while fostering ethical digital finance practices.
Bello stressed: “No consumer should face harassment, defamation, or be enticed into unmanageable debt disguised as digital lending.”
The regulations encompass all forms of unsecured lending conducted via electronic, online, mobile, or non-conventional channels, banning pre-authorised or automatic loans, requiring explicit loan terms, prohibiting deceptive marketing, and mandating fair interest rate frameworks.
For airtime and data lending, the rules stipulate the inclusion of at least one locally owned provider in services, with all partnerships requiring joint registration.
Additionally, the regulations prohibit monopolistic or dominance-driven agreements unless pre-approved by the Commission.
All digital lenders must register with the FCCPC within 90 days from the commencement date, with approval contingent on adherence to consumer protection, transparency, and data security benchmarks.
Operators failing to comply risk severe sanctions, including fines up to ₦100 million or 1% of annual turnover, plus potential director disqualifications lasting up to five years.
The Commission has called on Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and associated partners to initiate registration without delay.
It also encouraged consumers to utilise the FCCPC’s complaint portal to flag unregistered lenders, exorbitant interest rates, or privacy infringements.
This move is expected to bolster confidence in Nigeria’s digital economy, aligning with broader efforts to promote financial inclusion while safeguarding vulnerable borrowers.