Nigeria’s FCCPC Sets Rules, ₦100m Penalties for Loan Harassment

Nigeria

The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations aimed at stopping harassment, data breaches, and unethical practices by digital lenders operating in Nigeria.

In a statement signed by Ondaje Ijagwu, Director of Corporate Affairs of the FCCPC, the Commission’s Executive Vice Chairman and CEO, Tunji Bello, announced the new framework during an unveiling event in Abuja on Wednesday.

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello remarked. “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.”

The regulation named the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, took effect on July 21.

The rules, made under the Federal Competition and Consumer Protection Act (2018), require all digital lenders to register with the FCCPC within 90 days of the regulations’ commencement. Approval will depend on compliance with standards for transparency, data protection, and consumer rights.

Non-compliance will attract fines of up to ₦100 million or 1% of turnover, and directors of offending firms may be disqualified for up to five years.

Key provisions include prohibitions on pre-authorised or automatic lending, bans on unethical marketing tactics, mandates for accessible and clear loan terms, and requirements that at least one service provider involved in airtime and data lending be locally owned.

The rules also compel lenders in partnerships to register jointly and restrict monopolistic agreements without prior FCCPC consent.

The Commission has called on all Mobile Money Operators, Digital Money Lenders, and service partners to seek compliance information and reminded consumers to report unlawful lenders, unfair interest rates, or privacy violations.

Tunji Bello emphasized, “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”