The Federal Competition and Consumer Protection Commission (FCCPC) has officially issued the Digital Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025.
According to a statement from the FCCPC, the Regulation addressed long-standing consumer complaints and a variety of issues, which include “exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behavior by certain digital lenders and their partners within Nigeria’s rapidly growing digital credit market.”
The statement further noted that the Regulation, which derives its power from Section 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018) is geared at safeguarding consumers by establishing a comprehensive framework that mandates transparency, fairness, responsible conduct, data privacy and accessible redress mechanisms. “It is a crucial step towards regulating Nigeria’s rapidly expanding digital lending sector.
Announcing the gazetting and commencement of the Regulations in his office in Abuja on Wednesday, FCCPC’s Executive Vice Chairman/CEO, Mr. Tunji Bello stated: “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 rights and dignity of consumers, or the rule of law.”
“The 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,” he added.
Under the provisions, all digital lenders must register with FCCPC within 90 days of commencement. Approval is dependent on an applicant meeting standards that border on consumer protection, data compliance and transparency. Non-compliant operators face sanctions that 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 Regulation, 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.
The Commission has therefore asked all current and intending providers of digital lending services, including Mobile Network Operators (MNOs), Digital Money Lenders (DMLs) and service partners to acquire application forms, guidelines and compliance requirements from its website.
