The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations to rein in rogue digital loan brands and sanitize Nigeria’s online credit market
The move follows mounting complaints of harassment, privacy violations, predatory lending, and anti-competitive practices in the fast-growing sector.
In a statement on Wednesday, the Commission announced that the regulations—issued under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018)—will provide a comprehensive framework to protect consumers.
The rules, effective from July 21, 2025, mandate transparency, fairness, data privacy, ethical recovery methods, and accessible redress channels, all under FCCPC oversight.
Executive Vice Chairman and CEO, 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 new rules apply to all unsecured consumer loans offered via electronic, mobile, online, or other non-traditional channels. They cover registration of lenders, disclosure of loan terms, fair interest rates, responsible lending obligations, and strict data protection standards.
Key provisions include:
- Prohibition of pre-authorised or automatic lending.
- Ban on unethical marketing tactics.
- Mandatory joint registration for partnerships.
- Local ownership requirement for airtime and data lending services.
- FCCPC approval for any dominance-based agreements.
All lenders must register with FCCPC within 90 days of the commencement date. Defaulters risk penalties of up to ₦100 million or 1% of annual turnover, alongside possible disqualification of directors for up to five years.
The Commission urged digital money lenders, mobile money operators, and service partners to obtain registration forms and compliance guidelines via its website, www.fccpc.gov.ng. Consumers have also been encouraged to report unregistered lenders, unfair practices, or privacy breaches through [email protected].
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