FCCPC Reinstates Digital Lending Regulations in Nigeria
The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025. This decision follows a ruling by the Federal High Court affirming the FCCPC’s authority to regulate Nigeria’s emerging digital lending sector.
In a statement released on Monday, the FCCPC noted that this development stems from a verdict issued by Justice AL Allagoa of the Federal High Court of Lagos in case number FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN).
The FCCPC reported that the court dismissed all the plaintiffs’ requests and validated the Digital, Electronic, Online, or Nontraditional Consumer Finance (DEON) Regulations of 2025. The court confirmed that the regulations were established in alignment with statutory and constitutional authority, thereby affirming the FCCPC’s legal mandate.
Additionally, the court upheld key provisions of the regulations that had been challenged in the lawsuit and lifted an interim order that had previously restricted their implementation and enforcement.
Regulatory Authority Restored
The FCCPC highlighted that WASPAN had questioned its jurisdiction to develop and enforce these regulations. Following an interim court order in April, the Commission had paused the regulations’ implementation, awaiting the lawsuit’s outcome.
On the outcome, FCCPC Director-General Ondaje Ijagwu stated that the Commission remains committed to fulfilling its regulatory duties in accordance with the law. He emphasized, “The Commission has always maintained that the rule of law is the basis of effective regulation and good governance. We halted enforcement immediately in compliance with the court’s interim order.”
Ijagwu expressed confidence in the court’s ruling, stating that now, with the validity of the DEON Regulations confirmed, the Commission would proceed to enforce the regulations effectively and professionally.
The DEON Regulations aim to foster responsible lending practices, enhance regulatory accountability, and protect consumers in Nigeria’s burgeoning digital lending market. The FCCPC strives to ensure that innovation and financial inclusion occur within a transparent, equitable, and accountable regulatory framework that builds trust among consumers, investors, and responsible businesses.
Addressing Ethical Concerns in Digital Lending
Nigeria’s digital lending market has experienced rapid growth, offering short-term loans via mobile applications and online platforms to millions of consumers who often lack access to traditional banking services. However, the sector has also faced significant complaints regarding unethical debt collection practices, unauthorized access to borrowers’ personal information, overcharging, and violations of consumer privacy.
To combat these issues, the FCCPC has implemented a registration and regulatory framework for digital financial operators, sanctioning or delisting several entities that violated consumer protection laws.
The DEON Regulations, launched in 2025, are designed to enhance the oversight of digital lending operators by establishing standards related to licensing, consumer protection, transparency, and responsible lending practices. This ruling effectively removes the legal obstacle that had previously stalled the enforcement of these regulations, enabling the FCCPC to reinstate its regulatory framework for digital lending operators.
