Nigeria Strengthens Consumer Protection as FCCPC Resumes Digital Lending Enforcement
The FCCPC said the DEON Regulations were introduced to improve oversight of Nigeria's rapidly growing digital lending industry by promoting responsible lending, enhancing regulatory accountability, curbing exploitative practices, and strengthening consumer protection.
Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has resumed the full implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulation, 2025 (DEON Regulations) following a Federal High Court judgment affirming the Commission’s authority to regulate the country’s digital lending sector.
The decision follows a ruling delivered by Justice A. Alagoa of the Federal High Court in Lagos in Suit No. FHC/L/CS/760/2026, filed by the Wireless Application Service Provider Association of Nigeria Ltd/Gte (WASPAN). The court dismissed the case in its entirety, rejecting all reliefs sought by the association and holding that the DEON Regulations were validly issued under the FCCPC’s statutory and constitutional powers.
In its judgment delivered on July 20, the court upheld the provisions of the regulations that had been challenged and discharged the interim ex parte order issued in April, which had temporarily halted their implementation. As a result, the FCCPC announced that the regulations are once again fully operational and enforceable.
WASPAN had questioned the Commission’s authority to issue and enforce the digital lending regulations. Following the interim court order earlier this year, the FCCPC suspended implementation of the rules, stating that it was acting in compliance with the court’s directive while awaiting the final judgment.
“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive. Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law. The DEON Regulations are designed to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market. The goal has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike.”
– Ondaje Ijagwu, Director of Corporate Affairs, FCCPC
The FCCPC said the DEON Regulations were introduced to improve oversight of Nigeria’s rapidly growing digital lending industry by promoting responsible lending, enhancing regulatory accountability, curbing exploitative practices, and strengthening consumer protection.
With the legal challenge resolved, the Commission will resume oversight of digital lending platforms, including the registration of loan apps, monitoring of interest rate disclosures, compliance with data privacy requirements, and regulation of debt recovery practices. The FCCPC also announced that it will issue updated compliance guidelines for digital lenders in the coming days to support implementation of the regulations.
