The Federal Competition and Consumer Protection Commission (FCCPC) has introduced strict new regulations to tackle unethical practices in Nigeria’s growing digital lending market.
The new rules, which came into effect on July 21, 2025, are designed to curb harassment, data breaches, exploitative lending, and anti-competitive behaviour among online lenders. The regulations were made under Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018).
According to the FCCPC, the framework covers unsecured loans provided through mobile apps, online platforms, and other non-traditional channels. It sets clear requirements on registration, transparency, fair interest rates, ethical debt recovery, and data privacy.
Announcing the regulations in Abuja, the Commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, said Nigerians had suffered for too long under predatory digital lending systems.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said. “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.”
He stressed that the new rules give the FCCPC the legal tools to hold violators accountable and ensure digital finance is responsible and fair. “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” he added.
Key provisions of the regulations
Among the major reforms introduced, the FCCPC has banned pre-authorised or automatic lending without consumer consent. Lenders are now required to present loan terms in simple, accessible language to borrowers. The rules also prohibit aggressive or unethical marketing strategies.
For airtime and data lending, at least one service provider in each partnership must have local ownership. Joint registration is now mandatory for all lender collaborations, and no monopolistic or dominance-based agreements can take place without prior FCCPC approval.
In addition, all digital lenders must register with the FCCPC within 90 days of commencement. Failure to comply attracts fines of up to ₦100 million or 1 per cent of annual turnover, while directors of defaulting companies may face disqualification for up to five years.
Consumer protection at the centre
The regulations also provide for accessible redress mechanisms for borrowers. Consumers who feel exploited can file complaints through the Commission’s dedicated portal at lenderstaskforce@fccpc.gov.ng.
The FCCPC is encouraging the public to report unlawful or unregistered lenders, unfair interest rates, privacy breaches, or harassment linked to loan recovery.
Bello noted that the Commission’s priority is to create a fair lending environment where innovation thrives but consumers remain protected. He assured Nigerians that the FCCPC would strictly monitor compliance and apply sanctions where necessary.
A growing market under tighter oversight
Nigeria’s digital credit market has expanded rapidly in recent years, driven by increased smartphone use, mobile banking, and financial technology solutions. While these services have expanded access to credit, especially for those excluded from traditional banking, many operators have been accused of exploiting vulnerable borrowers.
Complaints of harassment by loan recovery agents, defamation of borrowers on social media, excessive interest rates, and misuse of personal data have dominated public discussions. The FCCPC says the new rules are intended to put an end to such practices while still encouraging innovation in financial services.
Industry observers believe that stricter oversight could help restore public trust in digital lending, attract more responsible investors, and expand financial inclusion on safer terms. However, some operators are likely to face challenges in meeting the compliance requirements, especially small and unregistered lenders.
The FCCPC has advised all current and prospective operators — including Mobile Money Operators, Digital Money Lenders, and service partners — to visit its website, www.fccpc.gov.ng, to download application forms and compliance guidelines.
With the new framework now in place, the Commission insists that it will no longer tolerate rogue practices in the sector. The goal, according to Bello, is simple: to ensure Nigerians can access credit without fear of exploitation.
