The Federal Competition and Consumer Protection Commission (FCCPC) has introduced sweeping new regulations aimed at curbing widespread abuses in Nigeria’s fast-growing digital lending sector.
The new framework, formally titled the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025, was announced in Abuja and officially came into effect on July 21, 2025.
It is designed to address persistent consumer complaints ranging from exploitative lending practices to data privacy violations and aggressive loan recovery tactics.
In a statement signed by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said the regulations were enacted pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018).
The goal, according to the Commission, is to establish a comprehensive legal framework that promotes transparency, fairness, responsible lending, and consumer redress.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” said Mr. Tunji Bello, Executive Vice Chairman and Chief Executive Officer of the FCCPC, during the announcement.
“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.”
The DEON regulations apply to all unsecured consumer lending conducted via electronic, online, mobile, or other non-traditional platforms.
They prohibit pre-authorised or automatic lending, mandate clear and accessible loan terms, and ban unethical marketing strategies.
Additionally, the rules require that at least one service provider in airtime and data lending partnerships be locally owned.
Lenders are also required to register jointly with their partners and obtain prior approval for any monopolistic or dominance-based agreements.
All digital lenders must register with the FCCPC within 90 days of the regulation’s commencement. Approval will be contingent on meeting strict standards for consumer protection, data compliance, and operational transparency.
Non-compliant operators face stiff penalties, including fines of up to ₦100 million or 1% of their annual turnover. Directors of offending companies may also face disqualification for up to five years.
“These regulations provide the legal tools to hold violators accountable and promote responsible digital finance,” Bello added.
“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”
