The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations to curb harassment, data breaches and other unethical practices by digital lenders in Nigeria.

The announcement was made in Abuja on Wednesday through a statement signed by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, quoting the Commission’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello.

“For too long, Nigerians have endured harassment, data breaches and unethical practices by unregulated digital lenders. These regulations draw a clear line: innovation is welcome, but not at the expense of consumer rights, dignity or the rule of law,” Bello said.

He added: “The regulations provide 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 statement noted that the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, took effect on 21 July.

Made pursuant to Sections 17, 18 and 163 of the Federal Competition and Consumer Protection Act (2018), the rules introduce a comprehensive framework to safeguard consumers in Nigeria’s fast-growing digital credit market.

Key provisions include:

• Mandatory registration of all digital lenders with the FCCPC within 90 days of commencement, subject to compliance with standards of transparency, data protection and consumer rights.
• Penalties of up to ₦100 million or 1% of annual turnover for non-compliance, alongside possible disqualification of directors for up to five years.
• Prohibition of pre-authorised or automatic lending.
• A ban on unethical marketing tactics.
• Mandatory clear and accessible loan terms.
• Local ownership requirement for at least one service provider in airtime and data lending services.
• Joint registration of lender partnerships.
• Restrictions on monopolistic agreements without prior FCCPC approval.

The Commission urged all Mobile Money Operators (MMOs), Digital Money Lenders (DMLs) and service partners to obtain application forms, guidelines and compliance requirements.

Consumers have also been encouraged to report unlawful or unregistered lenders, unfair interest rates, or privacy violations.