The Federal Competition and Consumer Protection Commission (FCCPC) has officially commenced enforcement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025, introducing penalties of up to ₦100 million against non-compliant digital lending operators in Nigeria.
The new rule, gazetted on July 21, 2025, is designed to rein in predatory practices that have fueled a wave of consumer complaints against loan apps, ranging from exploitative interest rates to harassment and data privacy violations.
A Long-Awaited Intervention
Announcing the commencement in Abuja on Wednesday, the Commission’s Executive Vice Chairman/CEO, Mr. Tunji Bello, described the regulations as a turning point in Nigeria’s fintech landscape.
“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 the rights and dignity of consumers or the rule of law,” Bello said.
According to the FCCPC, the rules provide the legal backing to monitor lending rates, sanction violators, and enforce responsible digital finance practices.
The DEON framework, made pursuant to Sections 17, 18, and 163 of the FCCPA 2018, establishes a comprehensive structure for oversight. Key provisions include:
- Sanctions: Non-compliant operators risk fines of up to ₦100 million or 1% of annual turnover, and directors could face five-year disqualification.
- Consumer Protection: Prohibits harassment, defamation, or coercive debt recovery tactics.
- Fair Lending Practices: Requires transparent loan terms, bans pre-authorised lending, and compels lenders to maintain responsible interest rates.
- Data Privacy: Restricts misuse of customer data and mandates ethical handling of personal information.
- Market Regulation: Forbids monopolistic partnerships and mandates joint registration for lender collaborations.
- Local Ownership Clause: At least one local service provider must be involved in airtime and data lending services.
“These measures,” noted FCCPC Director of Corporate Affairs Ondaje Ijagwu, “are aimed at protecting consumers while ensuring Nigeria’s digital credit market develops on a fair, transparent, and competitive footing.”
The rules apply broadly across all unsecured consumer lending conducted through electronic, online, mobile, or non-traditional platforms. This means Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and their partners must all comply.
The FCCPC has urged operators to download application forms and compliance guidelines from its website, while consumers have been encouraged to report abusive practices via its complaint portal: lenderstaskforce@fccpc.gov.ng.
Nigeria’s digital lending market has boomed in recent years, offering quick credit to millions without traditional banking access. But the sector’s explosive growth has also bred unsustainable debt, consumer abuse, and shady practices by unregulated operators.
With the commencement of the DEON Regulations, the FCCPC is sending a clear signal: innovation in digital finance must align with consumer rights, transparency, and the rule of law.
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