The Federal Competition and Consumer Protection Commission (FCCPC) has officially issued the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025 to address longstanding consumer complaints, including exploitative practices, harassment, data privacy violations, and unethical loan recovery tactics by certain digital lenders operating in Nigeria’s rapidly growing credit market.
The announcement was made in a press release issued and signed by Ondaje Ijagwu, Director, Corporate Affairs of the Commission on Wednesday, September 3, 2025.
The regulations, made under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), establish a comprehensive framework to protect consumers while promoting fairness, transparency, and responsible conduct among digital lenders. They also provide mechanisms for redress and empower the FCCPC to regulate and sanction violators within the sector.
Announcing the commencement of the regulations at his office in Abuja on Wednesday, the Commission’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, said, “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.”
Mr. Bello added, “This 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 regulations, which came into effect on July 21, 2025, introduce strict compliance requirements for all unsecured consumer lending conducted via electronic, online, mobile, or other non-traditional channels. Key provisions include:
- Mandatory registration of all digital lenders with the FCCPC within 90 days.
- Prohibition of pre-authorised or automatic lending.
- Clear disclosure of loan terms and transparent interest rates.
- Ban on unethical marketing and abusive loan recovery practices.
- Mandatory local ownership of at least one service provider for airtime and data lending.
- Joint registration of lender partnerships and prohibition of dominance-based agreements without prior FCCPC approval.
Digital lenders that fail to comply face sanctions, including fines of up to ₦100 million or 1% of annual turnover, as well as potential disqualification of directors for up to five years.
The FCCPC has urged all current and intending providers of digital lending services including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and other service partners, to visit www.fccpc.gov.ng for registration guidelines and compliance requirements.
Consumers are encouraged to report unlawful or unregistered lenders, unfair interest rates, or data privacy breaches to the Commission via its complaint portal at [email protected]
Faridah Abdulkadiri
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