The Federal Competition and Consumer Protection Commission (FCCPC) has launched a sweeping crackdown on rogue loan apps, unveiling landmark regulations that carry penalties of up to ₦100 million or 1% of turnover, and potential disqualification of directors for up to five years.
The new rules, issued under the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation 2025), were gazetted on July 21 and formally announced in Abuja on Wednesday. They require all digital lenders to register with the FCCPC within 90 days, with approval tied to strict standards on transparency, fairness, data privacy, responsible lending, and ethical debt recovery.
Join our WhatsApp ChannelAnnouncing the regulations, FCCPC’s Executive Vice Chairman, Tunji Bello, declared an end to unchecked abuses in the sector. “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 rights and dignity of consumers, or the rule of law.”
He added: “These regulations provide 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.”
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FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, described the regulations as a milestone for Nigeria’s fast-growing digital finance market. “This landmark regulation primarily safeguards consumers by establishing a comprehensive framework. It mandates transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms, all under the oversight of the FCCPC,” he said.
The rules also prohibit automatic lending, compel clear loan terms, ban unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending. They require joint registration of lending partnerships and forbid monopolistic or dominance-based agreements without FCCPC approval.
The crackdown comes after years of mounting complaints about loan apps notorious for debt-shaming tactics and data misuse. Since 2022, FCCPC has delisted more than 100 loan apps from online stores, warning others against predatory conduct. Consumer groups hailed the tougher rules as overdue, though fintech operators cautioned that smaller firms may struggle with compliance costs.
Analysts say enforcement will be the real test, as rogue lenders often resurface under new names or offshore registrations. For millions of Nigerians, the new rules could decide whether digital credit remains a lifeline or a trap.
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