In a landmark move to curb widespread harassment and exploitative practices, the Federal Competition and Consumer Protection Commission (FCCPC) has unveiled stringent new regulations for Nigeria’s digital lending sector.
The “Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025” officially gazetted and in effect since July 21, establish a comprehensive framework aimed at protecting consumers from data privacy violations, abusive loan recovery tactics, and anti-competitive behaviour.
Announcing the new rules in Abuja, FCCPC Executive Vice Chairman/Chief Executive, Mr. Tunji Bello, stated, “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.”
The regulations mandate that all digital lenders must register with the FCCPC within 90 days of commencement, with approval contingent on meeting strict consumer protection, data compliance, and transparency standards.
Non compliant operators now face severe sanctions, including fines of up to ₦100 million or one per cent of their turnover, and potential disqualification of directors for up to five years.
Key provisions of the new framework explicitly 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 the joint registration of all lender partnerships.
“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” Bello emphasised.
The commission has urged consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations, signalling a new era of accountability in the country’s rapidly expanding digital credit market.
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