Hot Source•Lenders mandated to register with commission or risk N100 million fine, others
James Emejo in Abuja
Executive Vice Chairman/Chief Executive, Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, yesterday, announced the release of Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, to address longstanding consumer complaints and a variety of issues.
The landmark regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), sought to primarily safeguard consumers by establishing a comprehensive framework.
The blueprint aimed at addressing exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behaviour by certain digital lenders and their partners within Nigeria’s rapidly growing digital credit market.
The framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under the oversight of FCCPC. They were a crucial step towards regulating the country’s rapidly expanding digital lending sector.
Announcing the gazetting and commencement of the regulations in Abuja, 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 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.”
The regulations, which came into effect on July 21, 2025, establishes a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.
Applicable to all unsecured consumer lending conducted through electronic, online, mobile, or other non-traditional means, the regulations set out clear requirements for registration, transparency, data privacy, ethical recovery, fair interest rates, and responsible lending.
According to a statement issued by Director, Corporate Affairs, FCCPC, Ondaje Ijagwu, under the provisions, all digital lenders must register with the FCCPC within 90 days of commencement.
Approval is dependent on meeting consumer protection, data compliance, and transparency standards. Non-compliant operators face sanctions, which may include fines of up to N100 million or one per cent of turnover, as well as potential disqualification of directors for up to five years.
The regulations further prohibit pre-authorised or automatic lending, compel clear and accessible loan terms, ban unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending services.
It also requires joint registration of all lender partnerships and prohibits monopolistic or dominance-based agreements without prior commission’s approval.
The commission further urged consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations to the commission.
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