*Nigeria鈥檚 Federal Competition and Consumer Protection Commission issues the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulations) 2025, to address long-standing consumer complaints and other market-related issues in the ecosystem

Alexander Davis | 绿帽献妻

In a decisive move to address long-standing consumer complaints and other market-related issues in Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has released the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulations) 2025.

The key features of the DEON Consumer Lending Regulations 2025 include provisions to address exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behaviour by certain digital lenders and their partners within Nigeria’s rapidly growing digital credit market.

绿帽献妻 reports one of the key provisions in the Regulations is focused on non-compliant operators facing sanctions, including fines of up to N100 million or 1 percent of the companies鈥� turnover, as well as potential disqualification of Directors for up to five years.

The Commission said the new Regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), primarily safeguard consumers by establishing a comprehensive framework.

The FCCPC said the new market regulatory framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under the oversight of the FCCPC.

It is a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector.

Highlighting the Regulations during the formal presentation, Mr. Tunji Bello, Executive Vice-Chairman/Chief Executive Officer (EVC/CEO) of FCCPC, announced the issuance of the instrument, and commencement of the Regulations Wednesday, September 3, 2025, in Abuja, FCT.

Bello said: “For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders.

鈥淭hese 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.鈥�

He also noted: 鈥淭his Regulations provide the legal tools to hold violators accountable and promote responsible digital finance.

鈥淣o consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.鈥�

The Regulations, which came into effect on July 21, 2025, establishes a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.

According to FCCPC, the new Regulations are applicable to all unsecured consumer lending conducted through electronic, online, mobile, or other non-traditional means, as they set out 鈥渃lear requirements for registration, transparency, data privacy, ethical recovery, fair interest rates, and responsible lending.鈥�

Mr. Ondaje Ijagwu, Director of Corporate Affairs of the Commission Wednesday also stated the new Regulations prohibit 鈥減re-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.鈥�

The market regulator stated the provisions further require joint registration of 鈥渁ll lender partnerships and prohibit monopolistic or dominance-based agreements without prior Commission鈥檚 approval.鈥�

The statement noted that under its provisions, all digital lenders must register with the FCCPC within 90 days of commencement.

Approval is dependent on meeting consumer protection, data compliance, and transparency standards, Ijagwu said.

Penalties for non-compliant operators

In the Regulations, the Commission said non-compliant operators would face sanctions, which may include fines of up to N100 million or 1 percent of turnover, as well as potential disqualification of directors for up to five years.

The FCCPC, therefore, urged all current and intending providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners in Nigeria to visit www.fccpc.gov.ng for application forms, guidelines, and compliance requirements.

The Commission also advised consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations to the Commission through its complaint portal: lenderstaskforce@fccpc.gov.ng.

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