Loan apps operating in Nigeria now face sanctions of up to N100 million as the Federal Competition and Consumer Protection Commission announced the commencement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025. The announcement was made in a press release on Wednesday, marking a major step in regulating digital lending and addressing consumer protection issues in Nigeria’s fast-growing online credit market. The development is expected to influence digital finance, loan recovery processes, consumer rights, and compliance for all operators offering electronic or mobile lending services.
According to the FCCPC’s Director of Corporate Affairs, Mr Ondaje Ijagwu, the new rule aims to tackle exploitative practices, data privacy violations, abusive recovery tactics, harassment, and anti-competitive behaviour by certain digital lenders and their partners. He noted that the rising complaints from consumers made it necessary to implement a regulatory framework that strengthens financial transparency, promotes responsible lending, and protects users across various digital platforms.
In the statement, the Commission’s Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello, confirmed the gazetting and commencement of the regulations at his office in Abuja. He stated that the move marks a significant shift in Nigeria’s digital lending environment. According to him, “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.” He added that no consumer should be harassed, defamed, or pushed into unsustainable debt under the guise of fast digital loans.
The FCCPC explained that the regulations were made under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act of 2018 and are designed to safeguard consumers by establishing a comprehensive structure for all digital lending operations. The rule, which took effect on July 21, 2025, sets out registration requirements, monitoring guidelines, and sanctions for operators who fail to comply. The commission warned that “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 new regulation applies to all unsecured consumer lending conducted through online platforms, electronic systems, mobile applications, and other non-traditional channels. It also addresses transparency, ethical marketing, fair interest rates, consumer data protection, and responsible lending standards. The FCCPC stated that the regulations prohibit pre-authorised or automatic lending, enforce clear loan terms, and mandate local ownership of at least one service provider offering airtime and data lending services. The rule also requires joint registration for all lender partnerships and prohibits monopolistic or dominance-based agreements without prior approval from the Commission.
All digital lending providers, including Mobile Money Operators, Digital Money Lenders, and related service partners, were directed to visit the Commission’s website for application procedures and compliance details. Consumers were encouraged to report unregistered lenders, unfair interest rates, or privacy violations through the complaint portal at lenderstaskforce@fccpc.gov.ng.
