All digital lenders operating in Nigeria have been directed by the Federal Competition and Consumer Protection Commission (FCCPC) to register with it within three months.
Failure to do so will attract up to N100 million fine or one percent of such firm’s annual turnover, as well as their closure or ban of their directors.
The requirement is one of the new rules listed in a gazette by the FCCPC. The gazette is known as the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025.
The new set of laws by the commission is aimed at addressing rising consumer complaints against digital lenders such as Mobile Money Operators (MMOs), Digital Money Lenders (DMLs) and their service partners.
FCCPC said in a statement by its Corporate Affairs Director, Ondaje Ijagwu, that the legal document, which became effective on July 21, 2025, is in line with Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018).
Ijagwu quoted the commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, as explaining that the Gazette establishes a comprehensive framework to safeguard consumers.
According to the statement, Bello restated FCCPC’s determination to stem exploitative practices, data privacy violations, and harassment of consumers by unregulated digital lending operators.
The statement partly reads: “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.
“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.”
Such issues include exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, as well as anti-competitive behaviour by some digital lenders and their partners.
“This framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under the oversight of the FCCPC. It is a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector,” the commission added.
The regulations make it mandatory for all digital lenders to be transparent, make their loan terms clear, deploy ethical recovery methods, and respect consumer privacy.
Besides, the new rules prohibit automatic lending, unethical marketing, and anti-competitive agreements.
They also mandate at least one locally-owned service provider for airtime and data lending services.
The FCCPC advised aggrieved consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations via its complaint portal at lenderstaskforce@fccpc.gov.ng.
Source; The Nation News
