The Federal Competition and Consumer Protection Commission has launched a major crackdown on rogue digital lenders with the introduction of tough new regulations aimed at cleaning up Nigeria’s fast-growing online credit market

To also address widespread complaints of harassment, data privacy violations, exploitative lending practices, and anti-competitive behaviour in Nigeria’s fast-growing digital credit market.

In a statement issued on Wednesday, the new regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), establish a comprehensive legal framework designed to safeguard consumers.

The rules mandate transparency, fairness, responsible lending conduct, data privacy protection, and accessible redress mechanisms, all under FCCPC’s supervision.

Announcing the gazetting and commencement of the regulations in Abuja, the Commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, said, “For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. 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.”

He added, “These regulations provide 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.”

Coming into effect on July 21, 2025, the regulations create a robust framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.

They apply to all unsecured consumer loans offered through electronic, online, mobile, or other non-traditional channels and set clear requirements for registration of all lenders and partnerships, transparency in loan terms, ethical recovery practices, fair interest rates, data protection and privacy, as well as responsible lending obligations.

Among the key provisions, the regulations prohibit pre-authorised or automatic lending, ban unethical marketing tactics, and compel lenders to present clear, accessible loan terms.

They also require local ownership of at least one service provider for airtime and data lending services, mandate joint registration for all lender partnerships, and prohibit monopolistic or dominance-based agreements without FCCPC’s prior approval.

Under the new rules, all digital lenders must register with the FCCPC within 90 days of commencement. Operators who fail to comply risk fines of up to N100 million or 1 per cent of annual turnover and may face disqualification of directors for up to five years.

The commission urged all current and prospective providers of digital lending services, including Mobile Money Operators, Digital Money Lenders, and service partners, to visit www.fccpc.gov.ng for application forms, compliance guidelines, and registration requirements.

Consumers have also been encouraged to report unlawful or unregistered lenders, unfair interest rates, or privacy breaches to the Commission through its dedicated complaint portal at [email protected].