The Nigerian government has introduced the Electronic, Online, or Non‑Traditional Consumer Lending Regulations to address concerns surrounding digital money lenders and mobile money operators. According to Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission (FCCPC), the new regulations provide a framework for the operation of digital lending services in the country. The rules took effect on 21 July 2025 and impose sanctions on non‑compliant operators, including fines of up to N100 million or 1 % of turnover and the possible disqualification of directors for up to five years.
FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello announced the gazetting and commencement of the regulations, emphasizing that they will tackle data breaches, harassment, and other unethical practices by digital money lenders. The regulations prohibit pre‑authorised or automatic lending, require clear and accessible loan terms, and ban unethical marketing. They also mandate that at least one service provider for airtime and data lending be locally owned and require joint registration of all lender partnerships. Additionally, any monopolistic or dominance‑based agreements are prohibited without the Commission’s approval.
All digital lenders must register with the FCCPC within 90 days of the regulations’ commencement. Approval depends on meeting standards for consumer protection, data compliance, and transparency. The FCCPC has urged current and prospective providers of digital lending services to visit its website for application forms, guidelines, and compliance requirements.
The regulations will affect operators of digital lending services, including Mobile Money Operators (MMOs) and Digital Money Lenders (DMLs) such as FairMoney, Carbon, PayLater, Okash, and Aella. This move is seen as a significant step toward regulating an industry plagued by complaints of harassment, data breaches, and unethical practices. The FCCPC had previously hinted at unveiling comprehensive regulations for digital lenders in 2023. With these regulations, the Commission aims to promote responsible digital finance and protect the rights and dignity of consumers. Their implementation is expected to have a substantial impact on Nigeria’s digital lending sector and will be closely watched by stakeholders and consumers alike.
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