No fewer than 521 digital lending companies have come under the regulatory oversight of the Federal Competition and Consumer Protection Commission (FCCPC) as the agency moves to sanitise Nigeria’s rapidly expanding digital credit market.
This follows the expiration of the January 5 deadline for full compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
The FCCPC had directed all digital lenders—whether app-based, online or operating through other non-traditional channels—to register with the Commission and comply with the new rules on or before January 5, 2026.
With the deadline now passed, FCCPC records show a surge in compliance, reflecting both stricter enforcement and the fast growth of Nigeria’s digital lending ecosystem.
According to the Commission’s database, 457 of the 521 registered companies have received full approval, while 35 have been granted conditional approval. Another 29 lenders, though licensed by the Central Bank of Nigeria (CBN), remain under FCCPC oversight.
However, the Commission disclosed that 103 loan apps operated by unregistered companies have been placed on its watchlist for regulatory action.
The FCCPC has repeatedly warned that digital lenders operating outside its approval framework risk sanctions, including delisting from digital platforms, monetary penalties and possible prosecution.
Industry stakeholders say the rise to 521 registered lenders underscores the size of Nigeria’s consumer credit market but raises concerns about effective supervision.
A Lagos-based financial analyst, Mr Adewale Adeoye, said while the FCCPC’s regulatory efforts are commendable, enforcement could become challenging given the number of operators.
“The FCCPC’s mandate covers consumer protection across all sectors of the economy, and digital lending is only a small part of that. Monitoring over 500 registered companies alone requires significant capacity, not to mention hundreds of illegal operators,” he said.
Adeoye added that the new guidelines also extend FCCPC oversight to lenders operating outside app-based platforms, further complicating enforcement.
Similarly, the President of the Money Lenders Association (MLA), Mr Gbemi Adelekan, acknowledged that enforcement could be overwhelming due to the volume of players.
He noted that the regulations also bring IT platforms supporting digital lenders under FCCPC supervision, increasing the Commission’s regulatory burden. Nevertheless, he said the FCCPC has remained responsive to industry concerns.
“We have raised issues with them, and they say they are prepared. They are responsive now, but whether that will continue as more issues arise remains to be seen,” Adelekan said.
The Regulations establish a comprehensive legal framework for registering, monitoring and sanctioning all forms of digital and non-traditional lending in Nigeria.
They apply to all unsecured consumer lending conducted through electronic, online, mobile or other non-traditional means and set clear standards on registration, transparency, data privacy, ethical recovery practices, fair interest rates and responsible lending.
The rules prohibit pre-authorised or automatic lending, mandate clear and accessible loan terms, ban unethical marketing practices and require local ownership of at least one service provider for airtime and data lending services.
They also compel joint registration of lender partnerships, prohibit monopolistic or dominance-based agreements without prior FCCPC approval, and bar loan apps from accessing customers’ contact lists, photos and transaction data.
According to the FCCPC, the regulations, which took effect on July 21, 2025 under the Federal Competition and Consumer Protection Act (FCCPA) 2018, are designed to promote fairness, transparency and accountability in the digital lending space.
While lenders were given until January 5, 2026 to comply, the Commission said enforcement would begin immediately after the deadline.
Adelekan said the new rules are already restoring sanity to the sector, noting a reduction in customer complaints. However, he warned that some borrowers are exploiting the pro-consumer framework.
“We have seen cases where someone took loans from 35 different platforms without repaying and was still applying to others. That is why we advise members to use credit bureaus and ensure regular reporting,” he said.
He added that credit bureaus are improving their systems to provide real-time credit reports.
The 2025 Regulations build on the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, which made registration mandatory for digital money lenders.
Despite earlier efforts, cases of borrower harassment and defamation persisted, with sanctions under the old framework largely limited to delisting apps from the Google Play Store. Many operators evaded this by distributing apps via Android Package Kits (APK).
Under the new regulations, non-compliant digital lenders face stiffer penalties, including fines of up to N100 million or 19 per cent of turnover, as well as possible disqualification of directors for up to five years.
