*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
*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
*“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. The regulations provide legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending”– TUNJI Bello, Executive Vice Chairman/Chief Executive Officer, FCCPC
*BY DR. GEORGE ELIJAH OTUMU, Executive Editor & Group Managing Director, NAIJA STANDARD NEWSPAPER Inc USA
The Nigerian government agency, Federal Competition and Consumer Protection Commission (FCCPC) has drawn a red line for loan operators in the country and put a new parameter in place to checkmate any excess, harassment, blackmail; coercion or manipulation from any financial operators to arm-twist any individual, under any guise.
To show FCCPC regulatory seriousness and oversight on the financial institutions, the body made it known it is ready to wield a big stick with a fine as high as N100million (One Hundred Million Naira only) on the bank that default.
FCCPC rolled out regulations to curb harassment, data breaches, and other unethical practices by digital lenders in Nigeria.
This was disclosed in a statement signed by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, which quoted the Commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, as unveiling the new framework in Abuja recently.
“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 CEO noted.
Bello added, “The regulations provide the legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”
The statement noted that the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, took effect on 21 July.
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.
Under the provisions, all digital lenders must 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 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.
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