The Federal Competition and Consumer Protection Commission (FCCPC) has announced new steps to check rising unethical practices by unregulated digital lenders.
On Wednesday, September 3, the Commission launched the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025. The new law is meant to address consumer complaints and other issues linked to digital lenders.
The Executive Vice Chairman of FCCPC, Dr. Tunji Bello, said in a statement that the new rules demand transparency, fairness, responsible conduct, data privacy, and easy ways for consumers to seek redress. He described it as an important move to regulate Nigeria’s fast-growing digital lending industry.
Dr. Bello explained that the regulations, made under the Federal Competition and Consumer Protection Act of 2018, are designed to protect consumers by ensuring accountability and openness in the lending system.
“For too long, Nigerians have suffered harassment, data breaches, and unethical conduct from unregulated digital lenders,” he said. “These new rules make it clear that innovation is welcome, but not at the cost of consumers’ rights and dignity or the rule of law.”
He added that the regulations provide strong legal tools to punish offenders and promote responsible digital finance. He stressed that no consumer should be harassed, defamed, or pushed into unsustainable debt under the cover of digital lending.
The new framework will register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria. It applies to unsecured consumer lending done through online, electronic, mobile, or other new platforms. It also sets rules for registration, transparency, data privacy, ethical loan recovery, fair interest rates, and responsible lending.
The rules ban automatic or pre-authorized lending, demand clear loan terms, prohibit unethical marketing, and require at least one locally owned service provider for airtime and data lending.
They also call for joint registration of lending partnerships and prohibit monopolistic agreements without FCCPC approval. All digital lenders must register with the FCCPC within 90 days of the law taking effect.
Approval will depend on meeting standards on consumer protection, data compliance, and transparency. Violators could face fines of up to ₦100 million or 1% of their turnover, as well as disqualification of directors for up to five years.
The FCCPC urged all operators, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners, to study the new guidelines and comply to avoid sanctions.
The Commission also encouraged consumers to report illegal lenders, unfair loan terms, or privacy violations through its approved complaint channels.
