The Federal Competition and Consumer Protection Commission (FCCPC) has issued a directive mandating all digital lending operators in Nigeria to fully comply with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 by Monday, January 5, 2026.
According to the FCCPC, the new regulation, which took effect on July 21, 2025, under the Federal Competition and Consumer Protection Act (FCCPA) 2018, seeks to promote fairness, transparency, and accountability across Nigeria’s digital lending ecosystem.
The move forms part of the Commission’s continued efforts to sanitize the sector following years of complaints about unethical practices among online lenders, including data breaches, unauthorized deductions, and harassment of borrowers.
Additional guidelines
To aid compliance, the Commission has released an additional instrument titled Guidelines on the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
The guidelines, made under Sections 17 and 163 of the FCCPA, provide detailed directions for digital lenders, including documentation requirements and updated versions of Forms 1 and 3.
- The FCCPC noted that the updated forms and processes were developed in response to feedback from industry stakeholders. Applicants with pending submissions are also permitted to provide any additional information required under the new guidelines without waiting for formal requests from the Commission.
- The Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, emphasized the importance of timely compliance, saying that full compliance is not only a legal requirement but an important step in protecting consumers and ensuring that the sector continues to grow in a fair and responsible manner. Operators have had ample time to adjust to the Regulations and the additional guidance now provided. We expect all obligations to be met before the deadline.
- He reiterated that the Commission will continue to process all pending applications transparently and promptly to ensure that no operator is unduly delayed in meeting the new compliance standards.
Enforcement
The FCCPC stated that enforcement actions will begin immediately after the January 5, 2026, deadline. Non-compliant entities risk being restricted from operation, while their partners or platforms may be directed to cease dealings with them. Other sanctions permitted under the law may also be applied.
All affected operators, including lending platforms, intermediaries, and service partners, are required to complete their compliance obligations before the set date.
The Commission confirmed that copies of the Guidelines, Forms, and Frequently Asked Questions (FAQs) are available on its official website fccpc.gov.ng. Operators can also make enquiries through FCCPC offices nationwide or through other official communication channels listed on the website.
What you should know
In recent years, Nigeria’s digital lending market experienced rapid growth. Mobile-based loan apps and online credit providers proliferated, driven by a surge of demand for accessible credit among consumers who often lacked access to traditional banking services. According to Nairametrics, the number of formally approved digital lending firms had grown to 425 by May 2025, up from 320 the previous year.
This growth highlighted both the opportunity and the risk in the sector. While instant digital credit offered new avenues of financial inclusion, it also raised concerns around high interest rates, aggressive recovery practices and weak credit controls.
