The Federal Competition and Consumer Protection Commission (FCCPC) has announced the official commencement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, which aims to impose a N100 million sanction on non-compliant Digital Lending operators in Nigeria.
This development, announced in a press release by the FCCPC on Wednesday, aims to address longstanding consumer complaints and related issues.
According to Ondaje Ijagwu, Director of Corporate Affairs, FCCPC, the rule is expected to tackle “exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behaviour by certain digital lenders and their partners within Nigeria’s rapidly growing digital credit market.”
According to the statement, the Commission’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, announced the gazetting and commencement of the Regulations at his office in Abuja on Wednesday.
He stated, “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.”
“Non-compliant operators face sanctions, which may include fines of up to N100 million or 1% of turnover, as well as potential disqualification of directors for up to five years,” the FCCPC warned.
“Critically, the Regulations prohibit pre-authorised or automatic lending, compel clear and accessible loan terms, ban unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending services.
“It also requires joint registration of all lender partnerships and prohibits monopolistic or dominance-based agreements without prior Commission approval,” the statement partly reads.
Naijaonpoint previously reported that digital lenders in Nigeria are currently worried about recent moves by the FCCPC to regulate their interest rates.
Following complaints by Nigerians that the interest rates of many digital lenders, popularly known as loan apps, are too high, the Commission, through its Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, said it will now monitor the rates.