The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations to tackle abusive practices by digital lenders accused of harassing borrowers, breaching their privacy, and charging exploitative interest rates.
In a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, the commission said the rules, which took effect in July 2025, are designed to safeguard millions of Nigerians who rely on loan apps for quick credit.
The regulations, officially titled Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, aim to address harassment, unethical recovery tactics, and anti-competitive behaviour in Nigeria’s expanding credit market.
Issued under the 2018 Consumer Protection Law, the new framework enforces transparency, fairness, data protection, and access to redress for consumers.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” said Tunji Bello, the FCCPC Chief Executive. “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.”
Many Nigerians had raised concerns about loan app operators resorting to public shaming and defamation to recover debts. Borrowers reported receiving threatening messages labelling them as criminals or announcing them as dead, with such messages often sent to their relatives, friends, and employers.
Rights groups have long criticised these practices as harassment and defamation.
Key Highlights of the New Rules
- All digital lenders must register with the FCCPC within 90 days.
- Companies must maintain fair interest rates, transparency, and ethical recovery processes.
- Automatic lending without consent and misleading advertising are now banned.
- Airtime and data lending services must include at least one locally owned partner.
- Non-compliance attracts fines of up to ₦100 million or 1% of annual turnover.
- Directors of violating firms risk being disqualified from doing business for up to five years.
According to Bello, the new framework gives regulators “the legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”
The FCCPC also urged Nigerians to report unregistered lenders, exploitative interest rates, or privacy violations via its complaint portal.
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