September 3, 2025 – The Federal Competition and Consumer Protection Commission (FCCPC) has officially announced the commencement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, aimed at protecting consumers in Nigeria’s fast-growing digital lending market.
The new regulations, issued pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), address complaints about exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behaviour by some digital lenders and their partners.
According to the FCCPC, the framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms. The Commission explained that these measures are a major step in regulating the country’s digital credit sector.
Speaking during the announcement in Abuja, the Commission’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, said Nigerians had suffered long enough from unethical practices by unregulated lenders.
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 rights and dignity of consumers, or the rule of law.”
He further added, “This 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.”
The Regulations, which took effect on July 21, 2025, set out clear requirements for all unsecured consumer lending carried out electronically, online, through mobile, or other non-traditional means. They cover registration, transparency in loan terms, ethical recovery practices, fair interest rates, and responsible lending.
Key provisions prohibit pre-authorised or automatic lending and compel digital lenders to provide clear and accessible loan terms. The framework also bans unethical marketing practices, requires joint registration of partnerships, and mandates that at least one service provider for airtime or data lending must be locally owned. Additionally, monopolistic or dominance-based agreements are prohibited unless approved by the FCCPC.
Under the regulations, all digital lenders must register with the Commission within 90 days of commencement. Approval will only be granted to those meeting consumer protection, transparency, and data compliance standards. The Commission warned that violators face heavy penalties, including fines of up to 100 million naira or 1% of their turnover, as well as possible disqualification of directors for a period of up to five years.
The FCCPC also called on all providers of digital lending services, 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 were urged to report unlawful or unregistered lenders, unfair interest rates, or breaches of data privacy through the Commission’s complaint portal at lenderstaskforce@fccpc.gov.ng.