FCCPC implements new rules to combat loan app harassment, threatens ₦100m sanctions
The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations to curb harassment, data breaches, and other unethical practices by digital lenders in Nigeria.
The FCCPC’s Executive Vice Chairman, Tunji Bello, unveiled the framework in Abuja on Wednesday, as stated in a release signed by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello noted. “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.”
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Bello added that the new rules “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 new framework, officially known as the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, became effective on July 21. It was established under the provisions of Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018).
Under the new rules, all digital lenders must register with the FCCPC within 90 days. Approval is contingent on meeting standards for transparency, data compliance, and consumer protection.
Non-compliant operators face penalties of up to ₦100 million or 1% of their turnover, in addition to the possible disqualification of directors for up to five years.
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The regulations also ban automatic lending, prohibit unethical marketing, require accessible loan terms, and mandate local ownership for service providers of airtime and data lending.
They also require joint registration for lender partnerships and restrict monopolistic agreements without prior FCCPC approval.
The Commission has urged all Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to obtain the necessary application forms, guidelines, and compliance requirements.
Consumers are also encouraged to report any unlawful or unregistered lenders, unfair interest rates, or privacy violations.
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