From Fred Ezeh, Abuja
The Federal Competition and Consumer Protection Commission (FCCPC) said it has taken some steps against the rising activities of some unethical practices by unregulated digital lenders.
The Commission announced the launch of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, to address long standing consumer complaints and a variety of issues against such digital lenders.
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Executive Vice Chairman of FCCPC, Dr. Tunji Bello, in a statement, yesterday explained that the framework mandates transparency, fairness, responsible conduct, data privacy and accessible redress mechanisms, all under the oversight of the FCCPC, adding that it is a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector.
He stated that the regulations, which were made pursuant to Sections 17, 18 and 163 of the Federal Competition and Consumer Protection Act (2018), primarily safeguards consumers by establishing a comprehensive framework that would ensure transparency and accountability.
He said: “For too long, Nigerians have endured harassment, data breaches and unethical practices by unregulated digital lenders. These new 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.
“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.
“It also established a robust legal framework to register, monitor and sanction all forms of digital and non-traditional lending in Nigeria. It’s 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 prohibit 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 these 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 one percent of turnover, as well as potential disqualification of directors for up to five years.”
The FCCPC urged all current and intending providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs) and service partners to get acquainted with the new guidelines and operate within to avoid sanctions.
The Commission also encouraged consumers to report unlawful or unregistered lenders, unfair interest rates or privacy violations to the Commission through the approved registered channels.
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