The Federal Competition and Consumer Protection Commission (FCCPC) has launched a major crackdown on unregulated digital lenders, unveiling strict new regulations designed to clean up Nigeria’s rapidly expanding online credit market.
The rules, gazetted and set to take effect on July 21, 2025, respond to widespread complaints of harassment, exploitative lending, data privacy violations, and anti-competitive behavior in the sector. They establish a comprehensive legal framework to safeguard consumers while promoting responsible digital finance.
Announcing the regulations in Abuja, FCCPC Executive Vice Chairman/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: innovation is welcome, but not at the expense of consumer rights, dignity, or the rule of law”.
The new framework, enacted under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), mandates transparency, fairness, ethical recovery practices, responsible lending, and data privacy protection, all under FCCPC supervision.
Key provisions include:
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Prohibiting pre-authorized or automatic lending.
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Banning unethical marketing tactics and compelling lenders to present clear, accessible loan terms.
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Requiring local ownership for airtime and data lending services.
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Mandating joint registration for all lender partnerships.
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Prohibiting monopolistic or dominance-based agreements without FCCPC approval.
The regulations apply to all unsecured consumer loans offered through electronic, online, mobile, or other non-traditional channels, setting clear obligations for registration, ethical conduct, transparency, interest rate fairness, and data protection.
All digital lenders must register with the FCCPC within 90 days of commencement. Non-compliance can attract fines up to N100 million or 1% of annual turnover, and directors may face disqualification for up to five years.
“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending. These rules will protect Nigerians while ensuring that digital financial innovation thrives responsibly.”
Bello emphasized that the regulations provide robust tools to hold violators accountable.
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