• Nigeria enforces new digital lending regulations to combat harassment and protect consumer rights
• Stricter data privacy laws were introduced, prohibiting unauthorised access to sensitive user information
• Lenders must comply with mandatory registration and face heavy penalties for violations

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nigeria’s digital lending industry is entering a new era of accountability as the Federal Competition and Consumer Protection Commission (FCCPC) rolls out stricter regulations to curb abuse and protect consumers.

The Digital, Electronic, Online, or Non-Traditional (DEON) Consumer Lending Regulations 2025 officially took effect on July 21, 2025, with full enforcement kicking in from January 2026.

The new framework targets long-standing issues in the sector, including harassment by loan apps, data privacy violations, and predatory lending practices.

With enforcement now in motion, operators are under pressure to comply or risk being shut out of the market.

Mandatory registration and compliance deadline

One of the most critical provisions is compulsory registration. All digital lenders, including fintech firms, telecom-based lenders, and Buy Now Pay Later (BNPL) platforms, must be registered with the FCCPC.

The commission set January 5, 2026, as the final compliance deadline. Operators that failed to meet the requirement now face strict sanctions, including app delisting and outright operational bans.

Zero tolerance for harassment

The era of aggressive debt recovery tactics appears to be over. The FCCPC has placed an outright ban on harassment, including name-calling, threats, and public shaming of borrowers.

Loan apps are now prohibited from sending defamatory messages to a borrower’s contacts, friends, or family members, a practice that previously drew widespread public outrage.

No more “automatic” loans

Under the new rules, lenders can no longer issue loans without clear, active consent from users. Pre-authorised or automated credit, often used to lure unsuspecting users into debt, has been banned.

This move is expected to improve transparency and ensure borrowers fully understand and agree to loan terms before funds are disbursed.

Stronger data privacy protections

The regulations also introduce stricter data protection requirements. Lenders must comply with the Nigeria Data Protection Act, including submitting a Data Protection Impact Assessment (DPIA).

Accessing sensitive user data such as phone contacts, photos, or personal files is now strictly forbidden, addressing one of the most controversial practices in the industry.

Local partnerships under scrutiny

To promote local participation, the FCCPC now requires that at least one partner in airtime and data lending services be locally owned.

In addition, all partnerships involving lenders, such as those with payment processors or debt recovery agents, must receive regulatory approval before operation.

Heavy penalties for violators

The cost of non-compliance is steep. Offending companies risk fines of up to ₦100 million or 1% of annual turnover.

Directors of non-compliant firms could also face disqualification for up to five years, signalling a tougher stance on accountability within the sector.

New reporting and transparency rules

Licensed lenders must now adhere to strict reporting standards. This includes filing bi-annual operational reports, annual returns, and providing borrowers with detailed usage statements within 24 hours of request.

The aim is to improve transparency and give consumers better control over their financial data.

What consumers should do

For borrowers, the message is clear: deal only with FCCPC-approved lenders. Consumers are also encouraged to report harassment, illegal data access, or other violations through the commission’s official complaint channels.

As enforcement deepens, the new regulations are expected to restore trust in Nigeria’s digital lending space while protecting users from exploitation.

FCCPC targets 103 loan apps for ban

Legit.ng earlier reported that no fewer than 521 digital lending companies have fallen under the regulatory oversight of the Federal Competition and Consumer Protection Commission (FCCPC) as the agency intensifies efforts to sanitise Nigeria’s fast-growing digital credit market.

This follows the expiration of the January 5, 2026, deadline for compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.

The FCCPC regulations require all digital lenders operating in Nigeria, whether app-based, online, or through other non-traditional channels, to register with the Commission and comply fully with its consumer protection rules.

Source: Legit.ng