From Atiku Sarki, Abuja
The Federal Competition and Consumer Protection Commission (FCCPC) has issued the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, aimed at addressing widespread consumer complaints in Nigeria’s fast-growing digital credit market.
The new regulations, which came into effect on July 21, 2025, were gazetted in Abuja on Wednesday and are designed to curb exploitative practices, harassment, data privacy breaches, and anti-competitive behaviour by unregulated digital lenders.
In a statement to journalists, the Commission’s Director of Corporate Affairs, Mr. Ondaje Ijagwu, said the regulations were made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act, 2018.
He explained that the rules establish a “comprehensive framework mandating transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under FCCPC oversight.”
Announcing the commencement of the regulations, FCCPC’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, said Nigerians have long suffered abuses from unregulated lending platforms.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said. “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.”
He added, “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending. These regulations provide the legal tools to hold violators accountable and promote responsible digital finance.”
The FCCPC said the framework requires all unsecured consumer lending services—whether through mobile apps, online platforms, or other non-traditional means—to comply with strict registration and operational rules. These include clear loan terms, fair interest rates, data protection, ethical loan recovery, and prohibition of pre-authorised or automatic lending.
In addition, digital lenders are compelled to ensure local ownership of at least one service provider for airtime and data lending services, jointly register all partnerships, and avoid monopolistic agreements without prior Commission approval.
The Commission warned that non-compliant operators risk sanctions, including fines of up to ₦100 million or 1 per cent of their annual turnover, and possible disqualification of directors for up to five years.
It further directed all current and prospective providers—such as Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners—to register with the FCCPC within 90 days of commencement.
