In order to address longstanding consumer complaints against the activities of Digital Money Lenders and Mobile Money Operators (MMOs) popularly known as loan sharks 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.
Other acts covered in the new law 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.
Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission, FCCPC, who disclosed this in a statement on Wednesday, said 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.
“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.
This Regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), primarily safeguards 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.
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.
“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, establishes 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 prohibits pre-authorised or automatic lending, compels clear and accessible loan terms, bans unethical marketing, and mandates 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 prior Commission’s 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.
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:
