As the Federal Competition and Consumer Protection Commission (FCCPC) tightens regulations to safeguard customers from abuse, Nigeria’s rapidly expanding digital lending sector is entering a new era of responsibility.
Intended to address years of grievances ranging from exploitative recovery techniques and harassment against data privacy breaches and anticompetitive activities.
The News Chronicle learnt that this law represents a pivotal moment for millions of Nigerians who have become victims of predatory loan apps.
Borrowers suffered humiliation, threats, and inappropriate use of personal information by unregulated operators for years. The new framework aims to rebuild trust by forcing digital creditors to treat consumers fairly, transparently, and respectfully.
Taking effect on July 21, 2025, the rules establish a comprehensive legal framework covering all types of unsecured consumer lending provided through online, electronic, mobile, or non-traditional means.
They demand that lenders register with the FCCPC, disclose transparent loan conditions, adhere to robust data protection policies, and employ ethical recovery techniques.
Notably, the regulations prohibit automatic lending, deceptive advertising, and monopolistic agreements without prior approval from the Commission.
Digital lenders who ignore regulations risk harsh fines. Sanctions include penalties of up to N100 million or one percent of yearly turnover; directors of errant firms may be disqualified for up to five years. The FCCPC has also made it mandatory for partnerships between lenders to undergo joint registration, while at least one service provider for airtime and data lending must be locally owned.
Executive Vice Chairman and CEO of the FCCPC, Tunji Bello, stressed that although digital finance is vital to broadening access to credit, innovation must not come at the expense of consumer respect or legal commercial behavior. The new rules, he observed, offer the means to uphold discipline and shield customers against abuse.
Through its official site, the Commission has encouraged digital lenders, mobile money operators, and their allies to start registration immediately. Customers are also urged to report any unapproved platforms, excessive interest charges, or data misuse directly to the FCCPC for prompt action.
