The Federal Competition and Consumer Protection Commission (FCCPC) has officially issued the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, to address persistent consumer complaints.
According to Ondaje Ijagwu, Director of Corporate Affairs at FCCPC, the new rules aim to curb exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behavior by certain digital lenders and their partners within Nigeria’s rapidly growing digital credit market.
The landmark regulations, enacted under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), primarily protect consumers by establishing a comprehensive framework. “This framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms — all under the oversight of the FCCPC. It is a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector,” the statement added.
Announcing the gazetting and commencement of the regulations at his Abuja office on Wednesday, FCCPC’s Executive Vice Chairman and CEO, Mr. 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 consumers’ rights, dignity, 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.”
Effective July 21, 2025, the regulations establish a robust legal framework for registering, monitoring, and sanctioning all digital and non-traditional lending activities in Nigeria. They apply to all unsecured consumer lending conducted electronically, online, via mobile, or through other non-traditional channels.
The regulations set clear requirements for registration, transparency, data privacy, ethical recovery practices, fair interest rates, and responsible lending. Crucially, they prohibit pre-authorized or automatic lending, require clear and accessible loan terms, ban unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending services. They also require joint registration of all lender partnerships and forbid monopolistic or dominance-based agreements without Commission approval.
All digital lenders must register with the FCCPC within 90 days of the regulations’ commencement. Approval depends on meeting consumer protection, data compliance, and transparency standards. Non-compliant operators face sanctions including fines up to ₦100 million or 1% of turnover, and possible disqualification of directors for up to five years.
The FCCPC urges all current and prospective digital lending service providers — including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners — to visit www.fccpc.gov.ng for application forms, guidelines, and compliance requirements.
Consumers are encouraged to report unlawful or unregistered lenders, unfair interest rates, or privacy violations via the Commission’s complaint portal at lenderstaskforce@fccpc.gov.ng.
