New regulations introduced by Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) aim to put a stop to dishonest digital lending tactics.
New Regulations for Digital Lending in Nigeria Aim to Protect Consumers and Promote Responsible Finance
In a significant move aimed at ensuring the rule of law in digital lending, the Federal Competition and Consumer Protection Commission (FCCPC) has established a robust legal framework for registering, monitoring, and sanctioning digital and non-traditional lending in Nigeria. The Regulations, announced by the Commission's Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, came into effect on July 21, 2025.
The regulations are designed to prevent consumer harassment, defamation, and luring into unsustainable debt under the guise of digital lending. Mr. Bello emphasized that these regulations are crucial to address harassment, data breaches, and unethical practices by digital lenders.
The new regulations prohibit pre-authorized or automatic lending, unethical marketing, and monopolistic or dominance-based agreements without prior Commission's approval. They also mandate clear and accessible loan terms, local ownership of at least one service provider for airtime and data lending services, and joint registration of all lender partnerships.
To ensure compliance, the FCCPC has provided application forms, guidelines, and compliance requirements on its website for current and intending providers of digital lending services. Approval for registration is dependent on meeting consumer protection, data compliance, and transparency standards.
Non-compliant operators face sanctions, including fines of up to N100 million or 1% of turnover, and potential disqualification of directors for up to five years. The regulations provide legal tools to hold violators accountable, as stated by Mr. Bello.
Mr. Bello also highlighted that the regulations draw a clear line between innovation and the rights and dignity of consumers. He stated that the Regulations aim to promote responsible digital finance and address the challenges faced by consumers in the digital lending space.
The regulations were gazetted and commenced at Mr. Bello's office in Abuja. All digital lenders are required to register with the FCCPC within 90 days of the regulations' commencement. The name of the regulatory official who introduced the regulations is not specified in the available search results.
In conclusion, the new regulations for digital and non-traditional lending in Nigeria represent a significant step towards consumer protection and the promotion of responsible digital finance. They aim to ensure that digital lending services are provided in a fair, transparent, and ethical manner, safeguarding the rights and dignity of consumers.
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