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The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations) following a Federal High Court judgment affirming the legality of the regulatory framework.
The decision comes after Justice A.L. Allagoa of the Federal High Court in Lagos dismissed a legal challenge against the regulations, clearing the way for the Commission to continue its oversight of Nigeria’s growing digital lending sector.
The judgment was delivered in Suit No. FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN).
Court upholds FCCPC’s regulatory powers
In a statement issued on Monday, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, disclosed that the court dismissed the originating summons filed by WASPAN and rejected all the reliefs sought by the association.
According to the Commission, the court ruled that the DEON Regulations were validly issued within the FCCPC’s constitutional and statutory mandate.
The judgment also upheld the specific provisions of the regulations challenged by the plaintiff and discharged the interim ex parte order that had previously restrained the Commission from implementing and enforcing the rules.
With the interim order lifted, the FCCPC confirmed that the regulations are once again fully operational.
“The legal impediment that had necessitated the Commission’s temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable,” the Commission stated.
Regulatory oversight returns to digital lending sector
The ruling marks a significant milestone in the Federal Government’s efforts to strengthen regulation of Nigeria’s rapidly expanding digital lending industry.
The sector has witnessed substantial growth in recent years through mobile applications and other online lending platforms, prompting increased regulatory attention over concerns relating to consumer protection, transparency and responsible lending practices.
The DEON Regulations establish standards for digital, electronic and other non-traditional lending businesses, with the aim of promoting accountability while addressing issues such as unfair lending practices, consumer exploitation and weak regulatory compliance.
Suspension followed court order
The FCCPC explained that implementation of the regulations was suspended in April 2026 after the Commission was served with an interim court order obtained by WASPAN, which questioned the agency’s authority to issue the regulations.
According to the Commission, it immediately complied with the court’s directive by halting enforcement, describing the decision as consistent with its commitment to the rule of law and judicial independence.
Commenting on the latest judgment, Ijagwu said the Commission has consistently maintained that effective regulation must operate within the framework of the law.
“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive.
“Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.”
Consumer protection remains priority
The FCCPC stressed that the regulations are not intended to discourage innovation or restrict access to digital financial services.
Instead, the Commission said the framework seeks to encourage responsible lending practices, improve regulatory accountability and strengthen consumer protection across Nigeria’s digital lending ecosystem.
According to Ijagwu, the regulations are designed to create a transparent and fair operating environment that benefits consumers, investors and responsible lending institutions alike.
“The DEON Regulations are designed to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market.
“Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike.”
Digital lenders face renewed regulatory scrutiny
Following the court’s decision, digital lenders and other businesses covered under the DEON Regulations are expected to come under renewed regulatory oversight as the FCCPC resumes enforcement activities.
The Commission maintains that as digital lending continues to expand beyond traditional banking channels, stronger regulatory safeguards are essential to protect consumers and promote responsible innovation.
The latest ruling therefore reinforces the FCCPC’s authority to regulate Nigeria’s emerging consumer markets while providing a firm legal foundation for the continued enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.
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