Digital Lending: FCCPC Issues Landmark Regulations to Curb Abuses

The Federal Competition and Consumer Protection Commission (FCCPC) has formally released the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, to address long-standing consumer complaints and malpractice within Nigeria’s growing digital credit market.

The new regulation tackles issues such as exploitative practices, data privacy breaches, abusive loan recovery tactics, harassment, and anti-competitive behavior by certain digital lenders and their partners.

Issued pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), the framework primarily safeguards consumers by mandating transparency, fairness, responsible conduct, data privacy protection, and accessible redress mechanisms—all under the oversight of the FCCPC.

Announcing the gazetting and commencement of the regulations at his office in Abuja, the Commission’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, said:

“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 the rights and dignity of consumers, or the rule of law. This regulation provides 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.”

Coming into effect on July 21, 2025, the regulation establishes a robust legal framework for the registration, monitoring, and sanctioning of all forms of digital and non-traditional lending in Nigeria. It applies to all unsecured consumer lending conducted electronically, online, via mobile, or through other non-traditional channels.

Key provisions include prohibiting pre-authorised or automatic lending, requiring clear and accessible loan terms, banning unethical marketing, mandating local ownership of at least one service provider for airtime and data lending, and requiring joint registration of all lender partnerships. It also prohibits monopolistic or dominance-based agreements without prior approval of the Commission.

Under the regulation, all digital lenders must register with the FCCPC within 90 days of commencement. Approval is contingent upon compliance with consumer protection, data privacy, and transparency standards. Non-compliance may attract sanctions, including fines of up to ₦100 million or 1% of turnover, as well as disqualification of directors for up to five years.

The FCCPC urges all current and intending providers of digital lending services—including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners—to visit www.fccpc.gov.ng for application forms, compliance guidelines, and requirements.

Consumers are also encouraged to report unregistered lenders, unfair interest rates, or privacy violations through the Commission’s complaint portal at lenderstaskforce@fccpc.gov.ng.