FCCPC Introduces Tough Regulations to Tackle Harassment and Data Breaches by Digital Lenders in Nigeria
The Federal Competition and Consumer Protection Commission (FCCPC) has announced sweeping new regulations aimed at curbing harassment, privacy violations, and unethical practices by digital lenders across Nigeria.
The Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, took effect on July 21, providing a strong legal framework to protect borrowers in Nigeria’s rapidly expanding digital credit sector.
In a statement signed by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the Commission’s Executive Vice Chairman/CEO, Tunji Bello, said the reforms mark a decisive shift in consumer protection.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. 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,” Bello stated.
Key Highlights of the New Regulations
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Mandatory registration: All digital lenders must register with the FCCPC within 90 days.
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Strict penalties: Non-compliant operators face fines of up to ₦100 million or 1% of annual turnover, alongside possible five-year director disqualification.
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Consumer safeguards: The rules prohibit pre-authorised loans, automatic lending, and unethical marketing.
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Transparency & compliance: Lenders must disclose accessible loan terms and comply with strict data privacy standards.
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Local participation: At least one service provider must be locally owned in airtime and data lending services.
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Partnership rules: Lender collaborations must be jointly registered, and monopolistic agreements require FCCPC approval.
Protecting Nigerian Consumers
Bello stressed that the regulations will help ensure responsible digital finance.
“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” he said.
The FCCPC urged Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to obtain application forms and compliance guidelines immediately.
Consumers were also encouraged to report unlawful or unregistered lenders, exploitative interest rates, and privacy violations to the Commission.
The Bureau News will continue to track enforcement measures as part of its Nigeria News Today coverage on digital finance reforms.