FCCPC Rolls Out Landmark Regulations for Digital Lenders
The Federal Competition and Consumer Protection Commission (FCCPC) has issued new regulations aimed at cleaning up Nigeria’s digital lending space.
The Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulation, 2025, targets practices that have drawn widespread complaints from borrowers. These include harassment, misuse of personal data, hidden charges, and aggressive loan recovery tactics.
The rules, which took effect on July 21, 2025, apply to all unsecured consumer lending conducted online, through apps, or by other electronic means.
The framework requires lenders to register with the FCCPC within 90 days. Approval will depend on compliance with transparency, data protection, and fair lending standards. Non-compliant operators face fines of up to ₦100 million or 1% of annual turnover. Directors of defaulting firms can also be disqualified for up to five years.
The regulations also:
a) Prohibit automatic loan approvals without clear consent.
b) Ban misleading advertising and abusive collection methods.
c) Mandate clear loan terms, fair interest rates, and ethical recovery practices.
d) Require at least one locally owned provider for airtime and data lending services.
e) Outlaw monopolistic agreements without FCCPC approval.
FCCPC’s Executive Vice Chairman, Tunji Bello, while announcing the gazetting and commencement of the regulations in Abuja, said the move is long overdue.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” he said. “These regulations make it clear that innovation is welcome, but not at the expense of consumer rights or the rule of law.”
He added that the framework now gives the Commission legal tools to hold violators accountable and to promote responsible digital finance.
All digital lenders, including mobile money operators and online loan apps, must apply for registration through www.fccpc.gov.ng. Consumers are encouraged to report unlawful practices or unregistered lenders directly to the Commission at lenderstaskforce@fccpc.gov.ng.
By enforcing these rules, the FCCPC says it wants to protect borrowers while still allowing room for innovation in Nigeria’s growing digital credit market.
