Nigeria: FG Moves Against Rogue Digital Lenders With New Regulatory Framework

The Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), has introduced stringent new regulations to rein in rogue digital lenders and restore order to Nigeria’s rapidly expanding online credit market.

The move follows widespread complaints of consumer harassment, data privacy violations, exploitative lending practices, and anti-competitive conduct by unregulated operators.

According to a statement issued on Wednesday, the regulations—enacted under Sections 17, 18, and 163 of the FCCPC Act (2018)—establish a comprehensive legal framework mandating transparency, fairness, responsible lending, data protection, and accessible redress mechanisms for consumers.

Announcing the commencement of the rules in Abuja, FCCPC’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, said the framework draws a clear boundary between innovation and consumer exploitation.
“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,” Bello stated.

The new rules, which took effect on July 21, 2025, apply to all unsecured consumer loans offered via digital, mobile, and other non-traditional channels. They set strict requirements on lender registration, transparent loan terms, ethical recovery practices, fair interest rates, and consumer data protection.

Among the key provisions, the regulations:

• Prohibit pre-authorised or automatic lending.
• Ban misleading or unethical marketing tactics.
• Mandate clear and accessible loan disclosures.
• Require joint registration for lender partnerships.
• Enforce local ownership of at least one provider for airtime and data lending services.
• Prohibit monopolistic agreements without FCCPC approval.

All operators must register with the FCCPC within 90 days. Defaulters face sanctions, including fines of up to ₦100 million or 1% of annual turnover, alongside potential director disqualification for up to five years.

The Commission urged Mobile Money Operators, Digital Money Lenders, and other service providers to obtain registration forms and compliance guidelines at www.fccpc.gov.ng. It also encouraged consumers to report unlawful lenders, unfair interest rates, or data breaches via its dedicated complaint portal at lenderstaskforce@fccpc.gov.ng.

“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,” Bello emphasised.