By Seun Ibiyemi
The Federal Competition and Consumer Protection Commission (FCCPC) has formally commenced enforcement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025, introducing a ₦100 million fine for non-compliant digital lending operators in Nigeria.
The Commission announced the move in a statement released on Wednesday, describing it as a decisive response to mounting consumer complaints and systemic abuses within the country’s fast-growing digital lending market.
Director of Corporate Affairs, Ondaje Ijagwu, said the framework is designed to curb “exploitative practices, data privacy breaches, harassment during loan recovery, and anti-competitive conduct by certain digital lenders and their partners.”
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, disclosed at his Abuja office that the regulations had been gazetted and took effect on 21 July 2025.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said. “These regulations draw a clear line that innovation is welcome, but not at the expense of consumer rights, dignity, or the rule of law.”
The regulations, enacted under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), establish a comprehensive legal framework for digital lending. Violators face fines of up to ₦100 million or 1 per cent of turnover, and directors risk disqualification for up to five years.
Under the new rules, all unsecured consumer lending—whether online, mobile, or through non-traditional channels—must comply with strict guidelines on registration, transparency, data protection, ethical recovery methods, and fair interest rates.
The FCCPC said the regulations ban automatic or pre-authorised lending, require accessible loan terms, prohibit unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending. All lender partnerships must be jointly registered, and dominance-based agreements are forbidden without prior approval.
The Commission advised Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service providers to visit its website for application forms and compliance guidance. Consumers are encouraged to report unregistered lenders, exploitative interest rates, or privacy violations via lenderstaskforce@fccpc.gov.ng
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Alongside its digital finance reforms, the FCCPC is intensifying its crackdown on food adulteration, warning that unsafe practices in markets threaten public health.
Speaking during a sensitisation campaign in Uyo on Wednesday, Bello, represented by Dr Nkechi Mba, Director of Quality Assurance and Development, warned vendors against prioritising profits over safety.
“The FCCPC remains committed to ensuring fair market practices and consumer protection across all sectors of the economy,” Bello said. “Food adulteration and forced fruit ripening are dangerous to health, and vendors must desist from such acts. Food safety is a shared responsibility, and upholding it is not just a legal obligation but a moral duty.”
Director of Consumer and Business Education, Mr Yahaya Gudan, told participants that the integrity of Nigeria’s food chain is under threat, stressing the need for vigilance and education to protect consumers.
State Coordinator of NAFDAC, Mr John Naeche, also warned that the use of chemicals to ripen fruits poses severe health risks and should be eradicated.
One participant, Mrs Nkoyo Etim, pledged to share lessons from the workshop with other market women to promote safer food practices and curb adulteration.