Digital Lending Rules Back in Force as FCCPC Wins Legal Battle

The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), following a Federal High Court judgment that vacated the restraining order against their enforcement.

Justice A.L. Allagoa of the Federal High Court, Lagos, on Monday dismissed the suit filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN), rejecting all the reliefs sought by the association. The court upheld the validity of the DEON Regulations, ruling that they were enacted within the FCCPC’s statutory and constitutional powers.
The court also affirmed the specific provisions of the regulations challenged in the suit and discharged the interim ex parte order that had halted their implementation and enforcement. With the legal restriction removed, the regulations are now fully operational and enforceable.
WASPAN had questioned the Commission’s authority to issue and implement the regulations. Following the interim court order issued in April 2026, the FCCPC suspended implementation in compliance with the directive, citing its commitment to the rule of law and respect for the judiciary.
Welcoming the judgment, FCCPC Director of Corporate Affairs, Mr. Ondaje Ijagwu, said the Commission had consistently demonstrated respect for judicial authority by suspending implementation when ordered by the court. He noted that, with the court affirming the legality of the regulations, the Commission would continue to carry out its statutory responsibilities in line with the law.
Ijagwu explained that the DEON Regulations are aimed at promoting responsible lending, enhancing regulatory accountability, curbing unfair and exploitative practices, and strengthening consumer protection in Nigeria’s digital lending sector. He added that the Commission remains committed to fostering innovation and financial inclusion within a transparent, fair, and accountable regulatory framework.