FCCPC Cracks Down on Digital Lenders with New Rules

Nigeria’s digital lending industry is set for a major shake-up as the Federal Competition and Consumer Protection Commission (FCCPC) has unveiled sweeping regulations to curb harassment, data abuse, and exploitative practices.

The new framework, officially presented as the Digital, Electronic, Online, or Non-Traditional (DEON) Consumer Lending Regulation 2025, took effect on July 21. It provides a comprehensive code for registration, ethical loan recovery, and consumer data protection in the fast-growing digital lending space.

Tunji Bello, executive vice-chairman and chief executive officer (CEO) of the FCCPC, said the regulations mark the end of unchecked abuses by online lenders.

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said in Abuja. “These regulations draw a clear line: innovation is welcome, but not at the expense of consumer dignity or the rule of law.”

All digital lenders must register with the FCCPC within 90 days of the regulation’s commencement. Approval will be tied to compliance with consumer protection, data security, and transparency standards.

Operators who fail to comply risk sanctions, including fines of up to N100 million or 1% of their turnover, and disqualification of directors for as long as five years.

The commission also urged mobile money operators (MMOs), digital money lenders (DMLs), and other fintech partners to download registration and compliance forms via its official website.

Consumers were advised to report cases of unregistered lenders, unfair interest rates, or data privacy violations to [email protected].