The Federal Competition and Consumer Protection Commission (FCCPC) has directed all digital lenders, also known as loan apps, to register with it within 90 days or risk a fine of ₦100 million.
The directive is contained in the new regulations the FCCPC rolled out to address digital lenders’ abusive practices, harassment of borrowers and breach of data privacy.
The regulations, known as the ‘Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025’, are designed to address exploitative interest rates, privacy breaches, abusive recovery tactics, harassment and anti-competitive practices in the country’s expanding credit market.
In a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, on Wednesday, September 3, the competition watchdog stressed that the regulations, which took effect in July, are meant to protect millions of Nigerians who depend on loan apps for quick credit.
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Issued under the 2018 consumer protection law, the regulations create a framework to safeguard borrowers through transparency, fairness, responsible conduct, data protection and access to redress.
The commission said the rules mark a significant step in bringing order to Nigeria’s fast-growing digital lending sector.
“Under the new rules, all digital lenders must register with the FCCPC within 90 days and meet standards on transparency, fair interest rates and ethical debt collection. Companies that fail to comply face fines of up to N100 million or 1 per cent of annual turnover, while directors risk being disqualified from business for up to five years,” FCCPC noted.
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The regulations also ban automatic lending without a borrower’s consent, prohibit misleading advertising, and require clear loan terms.
FCCPC further instructed that airtime and data lending services must include at least one locally owned partner, and joint ventures must be registered with the commission.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” the FCCPC Chief Executive, Tunji Bello, was quoted as saying.
“These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers, or the rule of law.”
Pinnacle Daily can report that most Nigerians have had a disgraceful experience with some loan apps that resulted in name-calling and public shaming when loans are not repaid.
Other measures like labelling defaulters as criminals or even announcing them as dead through messages to their relatives, friends and employers have frequently been applied to demean them.
These unprofessional approaches had attracted concerns from different rights groups, criticising and describing the approach as defamatory.
According to the FCCPC boss, the measures give the regulator “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,” Bello maintained.
He urged consumers to report unregistered lenders, unfair interest rates or privacy violations through the commission’s complaint portal.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
