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Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has introduced new penalties of up to ₦100 million—or 1% of annual turnover—for digital lenders found guilty of unethical conduct or other violations, under its updated 2025 Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations.
Unveiled in July, the rules represent the FCCPC’s most comprehensive effort yet to regulate Nigeria’s fast-growing but high-risk $2.1 billion consumer lending market. The framework builds on its 2022 intervention, which targeted illegal lending activities through enforcement actions such as office raids, app delistings, and operational shutdowns.
Under the new regime, individuals face fines of up to ₦50 million, while companies could pay ₦100 million or 1% of their prior year’s turnover—whichever is higher. Directors can also be sanctioned for up to five years. Sanctions may include suspension of operations, delisting from the FCCPC’s registration system, or revocation of approval to operate.
The regulation applies to all physical and digital lending entities, including state-licensed operators active across multiple states, and extends to players in regulated sectors such as telecommunications. Airtime lending—a major revenue stream for telcos like MTN Nigeria, which reported ₦83.19 billion in fintech revenue in H1 2025—is now formally under FCCPC oversight.
Microfinance banks are the only exempt institutions, but even they must apply for a waiver. Approval fees are set at ₦1 million for mobile money operators such as MTN’s MoMo and Airtel’s SmartCash, while existing licensed lenders—461 as of early August—must pay the same amount for approval covering up to two apps. Additional apps cost ₦500,000 each, with ownership capped at five.
Licences are valid for three years, expiring on 31 December of the third year, and must be renewed by 31 March the following year. Renewals are required every 36 months, alongside an annual levy of ₦500,000 or a commission-determined fee.
Beyond financial penalties, the regulations impose stringent consumer protection measures, including limits on advertising, bans on unsolicited marketing, mandatory transparency on fees, and affordability assessments before loan approvals. Interest rates will be monitored to prevent exploitative pricing, while operators must comply with the Nigerian Data Protection Act 2023, the Nigerian Communications Act 2003, and other relevant laws.
Operators are also required to conduct audits, submit biannual reports, file annual returns, and provide requested records within 48 hours. Existing lenders have 90 days to comply with the new rules.
Gbemi Adelekan, president of the Money Lenders Association, welcomed the reforms, noting they will bring greater stability to the sector, but warned that compliance costs could impact service pricing and accessibility.
Adedeji Olowe, founder of Lendsqr, said the new framework underscores the sector’s evolution: “Digital lending isn’t a side hustle anymore. It is part of the financial system, and it is going to be treated that way.”
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