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. Known as the Digital, Electronic, Online, or Non‑Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025, the rules took effect on July 21. The commission’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the framework is designed to protect consumers from exploitation by unregulated digital lenders. While innovation is welcome, Bello emphasized that it must not come at the expense of consumers’ rights, dignity, or the rule of law. The regulations provide 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). It introduces a comprehensive framework to safeguard consumers in Nigeria’s fast‑growing digital credit market. All digital lenders must register with the FCCPC within 90 days of commencement; approval is contingent on meeting standards of transparency, data compliance, and consumer protection. Non‑compliant operators face penalties of up to ₦100 million or 1 % of turnover, and directors may be disqualified for up to five years.
Key provisions prohibit pre‑authorised or automatic lending, ban unethical marketing, require accessible loan terms, and mandate local ownership of at least one service provider for airtime and data lending services. The rules also require 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 are encouraged to report unlawful or unregistered lenders, unfair interest rates, or privacy violations.
With these regulations, the FCCPC aims to promote a safe and responsible digital lending environment in Nigeria, protecting consumers from exploitation while fostering innovation within the bounds of the law.
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