The Federal Competition and Consumer Protection Commission (FCCPC) has introduced fresh regulations aimed at addressing widespread complaints of harassment, privacy violations, and unethical recovery methods associated with digital lending platforms.
In a statement released on Wednesday and signed by the Director of Corporate Affairs, Ondaje Ijagwu, the Commission explained that the rules, which became operational in July, were developed to strengthen consumer protection in Nigeria’s growing digital credit market.
The guidelines, formally titled Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, are intended to curtail exploitative interest rates, aggressive loan recovery measures, and anti-competitive practices. They also establish safeguards for borrowers through transparency, fairness, responsible lending, data security, and access to redress mechanisms.
The FCCPC described the measures as a milestone in bringing order to the digital lending sector, which has expanded rapidly in recent years as millions of Nigerians turn to loan apps for quick credit.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” said the Commission’s Chief Executive, Tunji Bello. “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.”
Public complaints in recent years have detailed cases in which lenders allegedly resorted to abusive tactics such as sending defamatory messages, labelling defaulters as criminals, or even spreading false death notices to family members, colleagues, and employers. Human rights organisations have condemned these practices as intimidation and character assassination.
Under the new framework, all digital lending operators are required to register with the FCCPC within 90 days and comply with strict provisions covering fair interest rates, transparent terms, and ethical debt recovery procedures.
Non-compliant companies risk financial penalties of up to ₦100 million or one per cent of annual turnover. Directors of such firms could also be barred from holding business positions for as long as five years.
The rules further outlaw automatic disbursement of loans without explicit consumer consent, restrict misleading promotional content, and demand clarity in the presentation of repayment conditions. In addition, airtime and data lending services are expected to include at least one indigenous partner, with all joint ventures duly registered with the Commission.
According to Mr Bello, the regulations empower the Commission with “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 appealed to the public to lodge reports of unregistered lenders, unfair interest rates, or data breaches through its official complaints platform, emphasising that consumer feedback would play a crucial role in enforcing the new rules.