The Federal Competition and Consumer Protection Commission (FCCPC) has launched a comprehensive set of regulations aimed at curbing widespread consumer abuse, data privacy violations, and other unethical practices in Nigeria’s booming digital lending industry.
The regulatory framework, titled the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulation (DEON Regulation) 2025, officially came into effect on July 21, and was formally unveiled on Wednesday in Abuja by FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello.
In a statement signed by FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, Bello described the initiative as a bold step toward sanitising the digital finance space.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello stated. “These regulations draw a clear line, innovation is welcome, but not at the expense of consumer rights or the rule of law.”
Key Features of the New Regulations
The DEON Regulation 2025, made under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), lays out a robust legal framework to protect borrowers using non-traditional lending platforms.
Under the rules:
- All digital lenders must register with the FCCPC within 90 days of the regulation’s effective date.
- Approval will depend on meeting strict standards related to transparency, ethical conduct, and consumer data protection.
- Unregistered or non-compliant lenders face heavy sanctions including fines of up to ₦100 million or 1% of annual turnover, and possible disqualification of company directors for up to five years.
Additional provisions include:
- A ban on pre-approved or automatic loans without clear consumer consent.
- Prohibition of unethical marketing tactics and misleading loan offers.
- Mandatory local ownership for any provider offering airtime or data-based loans.
- Joint registration required for all lender partnerships.
- Restrictions on exclusive agreements unless cleared by the FCCPC to prevent monopolistic practices.
Commission Warns Operators, Urges Public Vigilance
The FCCPC has directed Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and their technical service partners to immediately obtain application forms and begin the compliance process.
“These rules provide legal tools to hold violators accountable and promote responsible digital finance,” Bello added. “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of convenience.”
The Commission is also calling on the public to report any unregistered lenders, unfair interest rates, or privacy violations they encounter. Consumers are encouraged to use official FCCPC channels to submit complaints and access updated guidelines.
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