The Federal Competition and Consumer Protection Commission (FCCPC) has taken a decisive step to curb widespread abuses in Nigeria’s fast-growing digital lending sector with the introduction of landmark consumer protection regulations.
The new framework, known as the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025, seeks to tackle exploitative practices, privacy breaches, unethical loan recovery methods, and anti-competitive behavior by unregulated lenders.
According to the FCCPC, the regulations made pursuant to Sections 17, 18, and 163 of the FCCPC Act (2018) will provide legal backing for consumer safety by enforcing fairness, transparency, responsible lending, data protection, and clear redress channels.
Speaking in Abuja during the official announcement, Executive Vice Chairman/Chief Executive Officer of the Commission, Tunji Bello, said the regulations represent a turning point for the digital credit market.
“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 consumer rights and dignity,” Bello said.
He stressed that the FCCPC now has the tools to hold violators accountable, adding that no Nigerian should be harassed, defamed, or pushed into unsustainable debt under the guise of digital lending.
The rules, which came into effect on July 21, 2025, apply to all unsecured consumer loans offered through electronic, online, mobile, or non-traditional platforms. They introduce mandatory registration for lenders, require clear disclosure of loan terms, ban automatic or pre-authorised lending, and enforce ethical recovery practices.
Other key provisions include:
Local ownership requirement for airtime and data lending services.
Prohibition of unethical marketing.
Joint registration for all lender partnerships.
Ban on monopolistic agreements without FCCPC approval.
All operators are expected to register with the Commission within 90 days. Defaulters face fines of up to ₦100 million or 1% of annual turnover, and directors of erring firms risk disqualification for up to five years.
The FCCPC urged Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and other service partners to obtain application forms and compliance guidelines via its website, www.fccpc.gov.ng.
Consumers were also encouraged to report illegal or abusive lenders through the Commission’s complaint portal: lenderstaskforce@fccpc.gov.ng.
