The Federal Competition and Consumer Protection Commission (FCCPC) has rolled out sweeping new regulations targeting rogue digital lenders in a bid to reform Nigeria’s fast-growing online credit market.
The rules, which came into effect on July 21, 2025, aim to address long-standing complaints of harassment, data privacy breaches, exploitative loan practices, and anti-competitive behaviour among operators.
According to a statement issued on Wednesday, the regulations were introduced under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018). They establish a legal framework mandating transparency, fairness, data protection, ethical loan recovery, and responsible lending practices, with enforcement directly under FCCPC’s oversight.
Announcing the commencement in Abuja, FCCPC Executive Vice Chairman/Chief Executive Officer, Tunji 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 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.”
The rules apply to all unsecured consumer loans delivered through digital, electronic, mobile, or other non-traditional platforms. They require lenders and their partners to register with the FCCPC, adopt transparent loan terms, uphold ethical recovery methods, offer fair interest rates, and protect consumer data.
Key provisions include a ban on pre-authorised or automatic lending, prohibition of deceptive marketing tactics, and mandatory disclosure of loan terms in clear, accessible language. For airtime and data lending services, at least one service provider must be locally owned, while joint ventures and partnerships must undergo joint registration. Monopolistic agreements without FCCPC approval are also outlawed.
All digital lenders must complete registration within 90 days of commencement or face penalties of up to N100 million or 1 per cent of annual turnover, alongside possible disqualification of directors for up to five years.
The FCCPC urged Mobile Money Operators, Digital Money Lenders, and service partners to visit its website for compliance details and registration requirements. Consumers were also encouraged to report unregistered lenders, unfair charges, or privacy violations through the Commission’s complaint portal at lenderstaskforce@fccpc.gov.ng.