The Federal Competition and Consumer Protection Commission (FCCPC) has introduced sweeping new rules to end harassment, data breaches, and unethical practices by digital lenders in Nigeria.
The announcement came on Wednesday, September 3, in Abuja through a statement signed by Ondaje Ijagwu, the Commission’s Director of Corporate Affairs.
The Executive Vice Chairman and Chief Executive Officer, Tunji Bello, formally unveiled the framework, stressing that consumers’ rights will now be protected more effectively in Nigeria’s growing digital credit market.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello declared.
He explained that while innovation in financial technology is welcome, it cannot come at the cost of consumer dignity 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,” he said.
The new rules, formally known as the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, officially took effect on July 21.
They were enacted under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act of 2018.
Under the new framework, all digital lenders must register with the FCCPC within 90 days of starting operations.
Registration will only be approved if companies meet strict standards of transparency, consumer protection, and data compliance.
Violators face heavy sanctions, including fines of up to ₦100 million or 1% of their annual turnover.
In severe cases, directors of defaulting companies could be disqualified from holding office for as long as five years.
The rules also prohibit automatic or pre-authorised lending, ban unethical marketing tactics, and require loan terms to be accessible and clear.
Furthermore, for airtime and data lending services, at least one provider must be locally owned.
Partnerships between lenders must undergo joint registration, while monopolistic agreements are restricted without prior approval from the FCCPC.
The FCCPC urged Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and other service partners to obtain the necessary compliance forms and guidelines without delay.
Consumers have also been encouraged to report cases of unlawful lending, unfair interest rates, or breaches of privacy.
The Commission promised that complaints would be investigated promptly and penalties enforced.
Nigeria’s digital credit sector has expanded rapidly in recent years, providing easy access to loans for millions.
However, the rise of loan apps has also sparked widespread complaints about harassment, threats, and unethical debt collection tactics.
The new FCCPC regulations mark the first comprehensive framework designed to rein in these practices while still allowing innovation to thrive.
If properly enforced, they could reshape Nigeria’s digital lending landscape and restore public trust in financial technology.
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