The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations aimed at curbing harassment, data privacy violations, and other unethical practices by digital lending platforms in Nigeria.
The development was announced in a statement by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, which quoted the Commission’s Executive Vice Chairman/CEO, Tunji Bello, who officially launched the new regulatory framework in Abuja on Wednesday.
“For too long, Nigerians have suffered harassment, privacy violations, and unethical conduct from unregulated digital lenders,” Bello stated. “These new regulations make it clear that while innovation is encouraged, it must not come at the cost of consumer rights, dignity, or legal compliance.”
He added that the framework gives the FCCPC the legal backing to hold violators accountable while encouraging responsible digital finance practices. “No consumer should be harassed, defamed, or pushed into unsustainable debt under the pretext of digital lending,” he emphasized.
The newly introduced Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025 came into effect on July 21. The rules are grounded in Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), and provide a robust structure to protect consumers in Nigeria’s expanding digital credit sector.
Key highlights of the regulation include:
- Mandatory registration of all digital lenders with the FCCPC within 90 days of the commencement date.
- Strict requirements around transparency, data protection, and fair consumer treatment as prerequisites for registration.
- Prohibition of automatic or pre-authorized lending.
- Ban on misleading marketing practices.
- Requirements for fair and accessible loan terms.
- Mandatory local ownership of at least one provider for airtime and data lending services.
- Joint registration of lending partnerships.
- Restrictions on monopolistic arrangements without prior FCCPC approval.
Non-compliant digital lenders could face penalties of up to ₦100 million or 1% of their turnover, along with possible disqualification of directors for up to five years.
The Commission called on Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and related service providers to obtain the necessary application forms, guidelines, and compliance documents.
Consumers are also urged to report illegal or unregistered lending activities, exploitative interest rates, or any violations of their privacy rights.
