New Rule; FCCPC to Fine Defaulting Digital Lenders N100m

By Oluwakemi Kindness

Operators of digital lending services in Nigeria now risk fines of up to ₦100 million or 1% of their annual turnover, as well as disqualification of directors for as long as five years.

This, is if they fail to comply with the new Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025.

The landmark framework, issued by the Federal Competition and Consumer Protection Commission (FCCPC), took effect on July 21, 2025.

A statement on Wednesday by the Director, Corporate Affairs, Ondaje Ijagwu, said it seeks to tackle harassment, data breaches, exploitative practices, and anti-competitive behaviour within Nigeria’s fast-growing digital credit market.

Announcing the commencement of the regulations in Abuja, the FCCPC Executive Vice Chairman/Chief Executive Officer, Tunji Bello, said:

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders.

These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers, or the rule of law.”

The regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), mandate registration of all digital lenders within 90 days, and set clear rules on transparency, fairness, responsible lending, and consumer data privacy.

Key provisions include a ban on pre-authorised or automatic lending, mandatory disclosure of loan terms, restrictions on unethical marketing, and compulsory local ownership of at least one service provider for airtime and data lending. Partnerships must also undergo joint registration, while dominance-based or monopolistic agreements require prior FCCPC approval.

The Commission urged Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to access compliance guidelines on it official website.

Consumers are also encouraged to report unlawful or unregistered lenders, unfair interest rates, or privacy violations.