The Federal Competition and Consumer Protection Commission (FCCPC) has unveiled a new regulatory framework to address unethical practices in Nigeria’s digital lending sector.

The Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025, which took effect on July 21, 2025, introduces stricter oversight to curb harassment, data privacy breaches, exploitative loan recovery methods, and anti-competitive practices by digital lenders and their partners.

Speaking at the announcement of the gazetted regulations in Abuja on Wednesday, FCCPC Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, said the rules were designed to safeguard consumer rights while ensuring responsible innovation in Nigeria’s fast-growing credit market.

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“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said. “These regulations draw a clear line: innovation is welcome, but not at the expense of consumer dignity or the rule of law.”

The new framework requires all digital lenders to register with the FCCPC within 90 days of commencement and comply with transparency, ethical marketing, fair interest rates, and data protection standards. Violators risk fines of up to ₦100 million or 1 percent of turnover, as well as potential disqualification of directors for five years.

The regulation prohibits pre-authorised or automatic lending, mandates clear and accessible loan terms, bans unethical marketing and monopolistic agreements, and requires joint registration of lender partnerships. It also enforces local ownership for airtime and data lending providers.

The FCCPC has urged consumers to report privacy breaches, unfair interest rates, and unregistered lenders through its complaint portal.