The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has introduced new regulations aimed at curbing harassment, data breaches, and other unethical practices by digital lenders. According to a statement from the FCCPC, the regulations, known as the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, took effect on July 21.
The commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, stated that the new framework is designed to protect consumers from exploitation by unregulated digital lenders. Bello noted that innovation is welcome, but not at the expense of consumers’ rights and dignity or the rule of law. The regulations provide the legal tools to hold violators accountable and promote responsible digital finance, ensuring that no consumer is harassed, defamed, or lured into unsustainable debt.
The DEON Consumer Lending Regulation was made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018). The rules introduce a comprehensive framework to safeguard consumers in Nigeria’s fast-growing digital credit market. All digital lenders are required to register with the FCCPC within 90 days of commencement, with approval subject to meeting standards of transparency, data compliance, and consumer protection.
Non-compliant operators face penalties of up to ₦100 million or 1% of turnover, as well as possible disqualification of directors for up to five years. The rules prohibit pre-authorised or automatic lending, ban unethical marketing, compel accessible loan terms, and require local ownership of at least one service provider for airtime and data lending services. They also mandate joint registration of lender partnerships and restrict monopolistic agreements without prior FCCPC approval.
The commission has urged all Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to obtain application forms, guidelines, and compliance requirements. Consumers have also been encouraged to report unlawful or unregistered lenders, unfair interest rates, or privacy violations. With these new regulations, the FCCPC aims to promote a safe and responsible digital lending environment in Nigeria, protecting consumers from exploitation and promoting innovation within the bounds of the law.