Nigeria’s consumer watchdog, the Federal Competition and Consumer Protection Commission (FCCPC), has defended its controversial lending rules, insisting recent service disruptions stem from operators, not regulators.
The commission said the Digital Economy and Online Lending (DEON) regulations, introduced in July 2025, were designed to enforce transparency and ethical loan-recovery practices after a surge in consumer complaints about hidden charges and aggressive debt collection.
Although a final compliance deadline of January 5, 2026, was set, the FCCPC stressed that any current disruptions are the result of companies failing to regularize their operations within the stipulated timeline.
Contrary to speculation, the regulator clarified it has not banned airtime borrowing or data advance services, nor issued any directive restricting access to lawful telecom value-added offerings.
The intervention followed widespread reports of opaque fees, unexplained deductions, and poor disclosure standards across the sector.
According to the FCCPC, these persistent issues eroded consumer trust and necessitated stricter oversight.
“The regulations were introduced to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market,” the commission said.
Under the DEON framework, operators are now required to meet stricter standards, including proper registration, responsible lending practices, full disclosure of fees and terms, accessible complaint channels, robust data protection, and greater accountability for third-party partners.
The FCCPC maintains that the reforms are aimed squarely at restoring fairness and transparency in Nigeria’s rapidly growing digital lending market.
