Ondaje Ijagwu, Director of Corporate Affairs at the Federal
Competition and Consumer Protection Commission, FCCPC, disclosed this in a
statement on Wednesday.

Non-compliant operators of the new regulations face
sanctions, which include fines of up to N100 million or 1 per cent of turnover,
as well as potential disqualification of directors for up to five years.

FCCPC said the regulations take effect from July 21, 2025.

Announcing the gazetting and commencement of the regulations
in his office in Abuja on Wednesday, the Commission’s Executive Vice
Chairman/Chief Executive Officer, Mr Tunji Bello said the guidelines would
address data breaches, harassment and other unethical practices by digital
money lenders in Nigeria.

“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 the rights and dignity of consumers or the rule of law.

“These 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,” he added.

The Commission said the regulations prohibit pre-authorised
or automatic lending, compel clear and accessible loan terms, ban unethical
marketing, and

mandate local ownership of at least one service provider for
airtime and data lending services.

It also requires joint registration of all lender
partnerships and prohibits monopolistic or dominance-based agreements without
the Commission’s approval.

According to the provisions of the regulations, all digital
lenders must register with the FCCPC within 90 days of commencement.

Approval is dependent on meeting consumer protection, data
compliance, and transparency standards.

“The FCCPC urges all current and intending providers of
digital lending services, including Mobile Money Operators (MMOs), Digital
Money Lenders (DMLs), and service partners, to visit www.fccpc.gov.ng for
application forms, guidelines, and compliance requirements,” the FCCPC stated.

The regulations affect operators of digital lending
services, including Mobile Money Operators (MMOs), Digital Money Lenders

(DMLS) such as FairMoney, Carbon, PayLater, Okash, Aella and
others in Nigeria.

Recall that the FCCPC had in 2023 hinted of a plan to unveil
comprehensive regulations for digital lenders.