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 and a variety of issues.

These 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.

These regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), primarily safeguard consumers by establishing a comprehensive framework.

This framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under the oversight of the FCCPC.

It is a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector.

Announcing the gazetting and commencement of the Regulations in his office in Abuja, Wednesday, the Commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, stated, “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 Regulations, which came into effect on July 21, 2025, establish a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria. Applicable to all unsecured consumer lending conducted through electronic, online, mobile, or other non-traditional means, the regulations set out clear requirements for registration, transparency, data privacy, ethical recovery, fair interest rates, and responsible lending. Critically, 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 prior approval. Under its provisions, 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.

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

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 http://fccpc.gov.ng for application forms, guidelines, and compliance requirements.

The Commission advised consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations to the Commission through its complaint portal: lenderstaskforce@fccpc.gov.ng.