The Federal Competition and Consumer Protection Commission (FCCPC) has rolled out sweeping regulations to curb harassment, data breaches, and unethical practices by digital lenders across Nigeria.
In a statement signed by the Director of Corporate Affairs, Ondaje Ijagwu, the Commission said its Executive Vice Chairman and Chief Executive Officer, Tunji Bello, unveiled the new framework in Abuja on Wednesday.
“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,” Bello declared.
He added that the new rules “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.”
According to the Commission, the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, came into effect on July 21. The rules, made pursuant to Sections 17, 18 and 163 of the FCCPC Act (2018), establish a comprehensive framework to safeguard consumers in Nigeria’s rapidly expanding digital credit market.
Under the new provisions, all digital lenders are required to register with the FCCPC within 90 days of commencement, subject to strict standards on transparency, data protection, and consumer rights. Defaulters risk penalties of up to ₦100 million or one percent of annual turnover, as well as disqualification of directors for as long as five years.
The regulations further prohibit pre-authorised or automatic lending, outlaw unethical marketing, compel clearer loan terms, and mandate that at least one service provider in airtime and data lending must be locally owned. Partnerships among lenders must also undergo joint registration, while monopolistic agreements will not be allowed without prior FCCPC approval.
The Commission urged all Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and their service partners to obtain application forms, guidelines, and compliance requirements without delay.