From Fred Ezeh, Abuja
The Federal Competition and Consumer Protection Commission (FCCPC) announced on Wednesday, September 3, that it has taken steps to address the rising unethical practices by unregulated digital lenders.
The Commission launched the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, to tackle longstanding consumer complaints and various issues against such digital lenders.
Executive Vice Chairman of FCCPC, Dr Tunji Bello, in a statement on Wednesday, explained that the framework mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under the oversight of the FCCPC, adding that it’s a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector.
He stated that the Regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), primarily safeguard consumers by establishing a comprehensive framework to ensure transparency and accountability.
He said: “For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. These new 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 Regulation provides 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.
“It also establishes a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria. It’s 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 prohibit pre-authorised or automatic lending, compel clear and accessible loan terms, ban unethical marketing, and mandate 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 these 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 standards. Non-compliant operators face sanctions, which may include fines of up to N100 million or 1% of turnover, as well as potential disqualification of directors for up to five years.”
The FCCPC urged all current and intending providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners, to get acquainted with the new guidelines and operate within them to avoid sanctions.
The Commission also encouraged consumers to report unlawful or unregistered lenders, unfair interest rates, or privacy violations to the Commission through the approved registered channels.
Leave a comment