Nigerian Regulators Announce Stiff Penalties for Predatory Digital Lending Practices

The Federal Competition and Consumer Protection Commission (FCCPC)  has issued a stern warning to Nigeria’s online lending industry, threatening a penalty of up to ₦100 million for unethical conduct. This move comes as the commission intensifies its efforts to curb the predatory practices of some digital lenders, which have been a source of widespread consumer complaints.

The FCCPC’s warning is a direct response to the persistent issues of harassment, data privacy violations, and exorbitant interest rates levied by some online lenders. The commission has received numerous reports from consumers detailing how these companies resort to aggressive and unconscionable debt recovery tactics, including contacting third parties from borrowers’ contact lists to shame them into repayment.

The new penalty aims to enforce stricter compliance with consumer protection laws and bring sanity to the burgeoning fintech sector. The FCCPC stated that it will not tolerate any form of exploitation and is prepared to use its full regulatory power to protect citizens. This action is part of a broader strategy to create a safer and more transparent digital financial ecosystem in Nigeria, where consumer rights are respected and businesses operate with integrity.