FCCPC digital lending sanctions begin as Nigeria’s consumer regulator enforces new rules to protect borrowers and restore confidence in the loan market

The Federal Competition and Consumer Protection Commission on Wednesday commenced phased enforcement of sanctions against Digital Money Lending operators that failed to regularise their operations under the Digital, Electronic, Online and Non Traditional Consumer Lending Regulations, 2025.

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The Federal Competition and Consumer Protection Commission said the compliance deadline for affected operators expired on Monday, January 5, 2026, marking the end of the transitional window provided under the new regulatory framework.

In a statement issued on Wednesday, the Director of Corporate Affairs at the Commission, Ondaje Ijagwu, said the enforcement exercise is aimed at restoring regulatory certainty and rebuilding confidence in Nigeria’s fast growing digital lending market.

According to the statement, the FCCPC digital lending sanctions are being implemented in phases to ensure fairness, orderliness and strict adherence to due process.

Speaking on the development, the Executive Vice Chairman and Chief Executive Officer of the Commission, Tunji Bello, said the measures are necessary to give full effect to the regulations and protect consumers from abusive lending practices.

Tunji Bello said the compliance window has now closed and the Commission is proceeding with appropriate enforcement steps designed to promote discipline, transparency and consumer confidence, while avoiding disruption to legitimate business activity.

As part of the approved enforcement framework, the Commission has withdrawn the conditional approvals previously granted to some digital lenders that failed to complete the required regularisation process within the stipulated period.

The FCCPC confirmed that defaulting operators have also been removed from its published register of approved digital lenders, pending full compliance with applicable regulatory requirements.

Tunji Bello explained that the FCCPC register serves as a critical consumer protection tool, enabling Nigerians to identify lenders that meet regulatory standards and operate lawfully within the market.

He advised consumers to exercise caution when dealing with digital lenders that do not appear on the Commission’s current list of approved operators, warning that such entities may not meet minimum regulatory or consumer protection standards.

The Commission has also begun structured engagement with application hosting platforms and payment service providers as part of its statutory mandate to support enforcement and ongoing compliance monitoring.

For operators provisionally designated as eligible under transitional arrangements, the FCCPC has issued a final deadline of April 2026 to complete their registration under the DEON Regulations.

Tunji Bello said operators that fail to regularise their status within the extended period may face further regulatory measures as provided under the law.

The Commission stressed that the enforcement process is intended to support market discipline, protect compliant operators from unfair competition and shield consumers from abusive, deceptive or unlawful conduct.

Nigeria’s digital lending market has expanded rapidly in recent years due to increased smartphone use, wider mobile internet access and limited access to formal bank credit.

However, the sector has also attracted persistent complaints over excessive interest rates, opaque loan terms, borrower harassment and data privacy violations.

These concerns prompted the introduction of the DEON Regulations, which require digital lenders to register with the Commission, disclose ownership structures, comply with data protection standards and adhere to fair lending and debt recovery practices.

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With the latest decisive enforcement phase, the FCCPC reaffirmed its commitment to transparent regulation, fair competition and effective consumer protection across Nigeria’s digital economy, warning that defaulting operators will remain under sustained regulatory scrutiny.