FCCPC begins enforcement against non-compliant digital lenders

The Federal Competition and Consumer Protection Commission (FCCPC) has launched a phased crackdown on digital money lending operators that failed to comply with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations (DEON), 2025.

The compliance deadline expired on January 5, 2026. In a statement issued Wednesday, FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, said the enforcement drive is aimed at strengthening regulatory certainty and restoring public confidence in Nigeria’s rapidly expanding digital lending sector.

Executive Vice Chairman and CEO of the Commission, Tunji Bello, explained that the measures are designed to protect consumers from exploitative practices while ensuring fair competition. “The compliance window has closed. We are now proceeding with enforcement in a fair and orderly manner. The goal is discipline, transparency, and consumer confidence, not disruption of legitimate business,” he said.

As part of the enforcement framework, the FCCPC has withdrawn conditional approvals previously granted to lenders that failed to regularise their operations during the transition period. These operators have also been removed from the Commission’s register of approved digital lenders until they meet regulatory requirements.

Bello emphasised that the FCCPC register is a vital consumer protection tool, enabling Nigerians to identify lenders that meet standards. He cautioned consumers against dealing with unlisted operators.

The Commission has also begun engaging app hosting platforms and payment service providers to enforce compliance. For operators provisionally cleared under transitional arrangements, a new deadline of April 2026 has been set to complete registration. Those who fail to comply risk further sanctions.

Nigeria’s digital lending market has grown rapidly due to smartphone penetration and limited access to bank credit. However, it has been plagued by complaints of excessive interest rates, opaque loan terms, harassment of borrowers, privacy violations, and unlawful debt recovery methods such as public shaming.

The FCCPC said the ongoing enforcement is intended to safeguard consumers, protect compliant businesses from unfair competition, and ensure a predictable regulatory environment. It reaffirmed its commitment to transparent oversight, fair competition, and effective consumer protection across Nigeria’s digital economy.

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