FCCPC Unveils Regulations to Curb Harassment, Data Breaches by Digital Lenders

The announcement was made in a statement by FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, quoting Executive Vice Chairman/CEO Tunji Bello during the framework’s unveiling in Abuja on Wednesday.

Bello emphasized that while innovation in digital lending is welcome, it must not compromise consumer rights or legal standards. 

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” he said, adding that the regulations provide legal tools to hold violators accountable and foster responsible digital finance.

Effective from July 21, 2025, the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, enacted under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), establish a robust framework to protect consumers in Nigeria’s rapidly expanding digital credit market. 

All digital lenders must register with the FCCPC within 90 days, meeting strict standards for transparency, data compliance, and consumer protection. 

Non-compliance risks penalties of up to ₦100 million or 1% of turnover, with directors facing potential disqualification for up to five years.

The regulations ban pre-authorized or automatic lending, prohibit unethical marketing, mandate clear loan terms, and require at least one local service provider for airtime and data lending. 

They also enforce joint registration of lender partnerships and prohibit monopolistic agreements without FCCPC approval.

The FCCPC urged Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to obtain application forms and compliance guidelines. 

Consumers were encouraged to report unregistered lenders, unfair interest rates, or privacy violations to the Commission.