The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations for digital and non-traditional consumer lending, aiming to tackle exploitative practices, harassment, and data privacy violations that have plagued Nigeria's fast-growing digital credit market.
The framework, which took effect on July 21, 2025, requires all digital lenders including mobile money operators, digital money lenders, and online loan platforms to register with the FCCPC within 90 days. Approval will be based on transparency, data compliance, and responsible lending standards.
Key provisions include:
a ban on automatic or pre-authorized lending
clear disclosure of loan terms and interest rates
restrictions on unethical loan recovery tactics
mandatory joint registration for partnerships
a requirement for local ownership in airtime and data lending services
Read also
Violators face penalties of up to ₦100 million or 1% of annual turnover, while directors of non-compliant firms could be disqualified for up to five years.
FCCPC chief executive Tunji Bello said the rules strike a balance between innovation and consumer protection. "For too long, Nigerians have endured harassment and unethical practices by unregulated digital lenders. These regulations provide the legal tools to hold violators accountable and promote responsible digital finance," he said.
Industry watchers note that the move will reshape the competitive landscape for Nigeria's digital finance sector. While stricter compliance could push out predatory players, it also creates opportunities for fintechs and SMEs that embrace transparent, customer-friendly lending models.
Consumers have been encouraged to report illegal operators, unfair interest rates, or privacy breaches via the FCCPC complaint portal.
