The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has introduced new regulations to monitor interest rates charged by digital loan apps, aiming to protect consumers from exploitative practices.
The announcement, made on August 22, 2025, is part of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, effective July 25, 2025.
Under the new rules, the FCCPC will periodically review lending rates to ensure they align with consumer protection guidelines, citing Section 163 of the Federal Competition and Consumer Protection Act, 2018.
The move addresses widespread complaints about exorbitant rates, with some apps charging nearly 200% annual interest, such as a case where a N2.5 million loan required N6.4 million in repayments over 24 months.
Digital lenders have expressed concerns, arguing that rates reflect high operational costs and risks, as most rely on borrowed funds and serve low-income borrowers prone to default.
Gbemi Adelekan, President of the Money Lenders Association, warned that rate monitoring could disrupt the industry without government funding to support financial inclusion.
The regulations also mandate transparency in loan terms, ban access to borrowers’ personal data for harassment, and impose fines of up to N50 million for individuals or N100 million for companies for non-compliance.
Lenders have 90 days to comply, with 425 registered apps already under scrutiny as of May 2025.
While consumer advocates praise the FCCPC’s efforts, lenders caution that overregulation may limit credit access for underserved Nigerians.
The agency remains committed to balancing consumer protection with a sustainable digital lending ecosystem.
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