Nigeria’s FCCPC Introduces Regulations to Curb Unethical Digital Lending Practices
The Regulations, which came into effect on July 21, 2025, establishes a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.
Announcing the gazetting and commencement of the Regulations at his office in Abuja, the Commission’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, stated that for too long, Nigerians had endured harassment, data breaches, and unethical practices by unregulated digital lenders. He said that the regulations drew a clear line, emphasizing that innovation was welcome but not at the expense of the rights and dignity of consumers or the rule of law.
He added that the regulations provided the legal tools to hold violators accountable and to promote responsible digital finance, stressing that no consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.
The Regulations, which came into effect on July 21, 2025, establishes a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria. 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 prohibits 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 its 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 urges all current and intending providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners, to visit the website for application forms, guidelines, and compliance requirements.
