The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to digital lenders in Nigeria, declaring that harassment, defamation, and privacy violations of consumers will no longer be tolerated under its new regulatory framework.
The Commission unveiled the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which came into effect on July 21, aimed at sanitising the fast-growing digital lending industry notorious for aggressive recovery practices.
FCCPC’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, said the regulations were designed to protect consumers while ensuring responsible innovation in digital finance.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello stated in Abuja. “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.”
Under the new rules, all digital lenders must register with the FCCPC within 90 days, meet transparency and compliance standards, and adopt fair lending practices. Operators who fail to comply risk penalties of up to ₦100 million or 1% of their turnover, alongside possible disqualification of directors for up to five years.
The framework also prohibits pre-authorised or automatic lending, bans unethical marketing, compels clear loan terms, and requires at least one locally owned service provider in airtime and data lending services.
The Commission urged consumers to report unregistered lenders, unfair interest rates, and breaches of privacy, assuring that the era of intimidation and cyber-shaming in the lending sector is over.
