The Federal Competition and Consumer Protection Commission (FCCPC) has rolled out sweeping new rules to regulate Nigeria’s fast-growing digital lending industry, following years of consumer complaints about harassment, data breaches, and predatory practices.
The Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025 took effect on July 21, 2025. The framework establishes strict requirements for registration, transparency, ethical loan recovery, fair interest rates, and data privacy, with the goal of protecting consumers and ensuring accountability across the sector.
Speaking at the announcement in Abuja, FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, said the regulations mark a turning point for financial consumer protection in Nigeria.
“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,” Bello said.
He added that the new framework gives the Commission the tools to punish violators and promote responsible digital finance. “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”
Key Provisions
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All digital lenders must register with the FCCPC within 90 days of commencement.
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Pre-authorised or automatic lending is prohibited.
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Loan terms must be clearly stated and accessible.
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Unethical marketing and abusive recovery practices are banned.
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Airtime and data lending services must include at least one locally owned provider.
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Lender partnerships must undergo joint registration.
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Monopolistic or dominance-based agreements require FCCPC approval.
Operators that fail to comply risk fines of up to ₦100 million or 1% of turnover, in addition to possible disqualification of directors for as long as five years.
The regulations apply to all unsecured consumer lending offered through electronic, online, mobile, or other non-traditional platforms, covering Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners.
The FCCPC has urged consumers to report unlawful or unregistered lenders, unfair interest rates, or data privacy violations via its complaint portal at [email protected]. Application forms and compliance guidelines are available on the Commission’s website at http://fccpc.gov.ng.
