By Nkechi Eze
The Federal Competition and Consumer Protection Commission (FCCPC) has taken a decisive step to protect Nigerians from widespread abuses in the fast-growing digital credit market, with the official issuance of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025.
The new regulations, which came into effect on July 21, 2025, are designed to tackle a range of consumer complaints that have plagued the sector for years, including exploitative lending practices, privacy violations, unethical loan recovery methods, harassment, and anti-competitive behaviour by certain digital lenders and their partners.
In a statement signed by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the regulations were described as a landmark framework anchored on Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018). The framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms—all under the oversight of the FCCPC.
Speaking during the announcement of the gazetting and commencement of the regulations in Abuja, the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, said Nigerians have for too long endured harassment, data breaches, and unethical practices at the hands of unregulated digital lenders.
“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,” Bello declared.
He further stressed that the regulations now provide “the legal tools to hold violators accountable and promote responsible digital finance,” adding that no consumer should be “harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”
The new legal framework applies to all unsecured consumer lending conducted through electronic, online, mobile, or other non-traditional platforms. Among its key provisions are the prohibition of pre-authorised or automatic lending, the requirement for clear and accessible loan terms, and a ban on unethical marketing. The regulations also mandate local ownership of at least one service provider for airtime and data lending services, joint registration of all lending partnerships, and prohibit monopolistic or dominance-based agreements without prior approval from the Commission.
All digital lenders are now required to register with the FCCPC within 90 days of the regulations’ commencement. Approval will be granted only to operators that meet strict consumer protection, data compliance, and transparency standards. Non-compliant entities risk facing sanctions ranging from fines of up to ₦100 million or 1% of annual turnover, to disqualification of directors for up to five years.
The Commission urged all current and prospective providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and their service partners to obtain application forms, guidelines, and compliance requirements via its official website, www.fccpc.gov.ng.
Consumers were equally advised to report unlawful or unregistered lenders, unfair interest rates, or privacy violations through the FCCPC’s complaint portal at lenderstaskforce@fccpc.gov.ng.
