The Federal Competition and Consumer Protection Commission (FCCPC) has commenced the enforcement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (2025). The regulation aims to address the unruly debt recovery process of loan apps and their frequent violations of data privacy. The move comes weeks after the regulation was issued to the public.
In a statement released via its X page (formerly Twitter), the commission explained that the regulation is its response to the rapidly expanding Nigerian digital lending space. The policy will also address rising complaints surrounding public harassment of borrowers by loan apps and unethical debt recovery strategies.
FCCPC said the regulation will address a variety of issues that include “exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behaviour by certain digital lenders and their partners within Nigeria’s rapidly growing digital credit market.”
While loan apps have become popular amid the increasing economic pressure, the operational patterns of these digital lenders have often raised concerns. Some lenders resort to aggressive tactics, including sending embarrassing messages to borrowers and displaying personal photos of borrowers across social media when repayments are being delayed.
According to the FCCPC, the enforcement of a strict regulation that guides the activities of loan apps is essential. The regulation, which was unveiled on July 21, 2025, mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms. The enforcement of these frameworks falls under the watch of the FCCPC.
The commission’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, noted that the regulation is a response to frequent violations by loan apps. He stressed that no borrower deserved to be harassed, lured or defamed into debts under the mask of digital lending.
“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 rights and dignity of consumers, or the rule of law,” he said, as cited in a part of the statement.
Also Read: 10 key points on Nigeria’s new FCCPC digital lending regulations.
The regulation will seek to promote safe digital lending practices among Nigerian Loan apps. Protecting the innovations of digital lenders is also a focus, but ensuring these are carried out without infringing on borrowers’ rights remains a priority.
Mandatory registration for new and unregistered loan apps
As part of the enforcement of the new regulation, FCCPC is also prioritising proper registration by new and unregistered loan apps. This is to ensure that digital lenders promote transparency, data privacy, ethical recovery, fair interest rates, and responsible lending.
The Commission, as stated in the regulation, mandates that all new digital lenders must register within 90 days of commencement. Also, approval of operation is dependent on meeting consumer protection, data compliance, and transparency requirements.
“Non-compliant operators face sanctions, which may include fines of up to ₦100 million or 1% of turnover, as well as potential disqualification of directors for up to five years,” it added.
As of July 2025, FCCPC revealed that 399 digital lenders have been approved, up from 380 as of February and 199 in April 2023. Also, total approvals (including conditional) have now reached around 425.
The debt recovery processes of loan apps have often led to the violation of human rights and dignity. These actions have led to significant distress, with victims losing jobs and facing public humiliation. With the regulation, FCCPC is stepping up to the situation and securing an enabling digital lending space.
Previously, the commission had encouraged Nigerians to report any instances of harassment from loan apps by sending complaints via email to @fccpc.gov.ng or message FCCPC directly on X. Nigerians can also visit fccpc.gov.ng and navigate to the “File a Complaint” section to fill in details such as the loan app’s name, contact details, loan amount, and a description of the issue.