The Federal Competition and Consumer Protection Commission (FCCPC) has begun phased enforcement of sanctions against digital money lending operators that failed to regularise their operations in line with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations). The compliance deadline for affected operators expired on Monday, January 5, 2026, marking the end of the transitional period granted to digital lenders operating in Nigeria’s rapidly growing fintech market.
According to the Director of Corporate Affairs at the FCCPC, Ondaje Ijagwu, the enforcement exercise is intended to ensure regulatory certainty while restoring confidence in Nigeria’s digital lending ecosystem. In a statement, the Commission confirmed that only lenders that have fully completed the registration and regularisation process are authorised to operate legally and that defaulting operators have been removed from the FCCPC’s published register of approved digital lenders, pending full compliance with all applicable regulatory requirements. This register serves as a critical tool for consumer protection, allowing the public to identify lenders that meet regulatory standards.
Speaking on the development, the Executive Vice Chairman and Chief Executive Officer, Tunji Bello, emphasised that the measures are necessary to give full effect to the DEON Regulations and to protect consumers from abusive and unethical lending practices. Bello explained that the FCCPC is proceeding with enforcement steps in a fair, orderly manner consistent with due process, underlining that the objective is to promote discipline, transparency, and consumer confidence within the digital lending space without disrupting legitimate business activity. As part of the enforcement framework, the Commission has withdrawn conditional approvals previously granted to certain digital lenders that failed to complete the regularisation process during the transitional period. Operators provisionally designated as eligible under transitional arrangements have been given a final deadline of April 2026 to complete full registration, after which further regulatory measures may be applied as permitted by law.
The FCCPC has also commenced structured engagement with application hosting platforms and payment service providers as part of ongoing compliance monitoring activities. This approach is consistent with the Commission’s statutory mandate to protect consumers, maintain market discipline, and safeguard compliant operators from unfair competitive practices. The ongoing enforcement is intended to support market stability and ensure a predictable regulatory environment, which is essential for both consumers and legitimate businesses operating within Nigeria’s digital economy.
Nigeria’s digital lending market has expanded rapidly in recent years, driven by widespread mobile internet access, rising smartphone penetration, and limited access to formal bank credit. However, this growth has been accompanied by complaints of excessive interest rates, opaque loan terms, aggressive debt recovery methods, data privacy violations, and unauthorised access to borrowers’ contacts. These challenges prompted the introduction of the DEON Regulations, which mandate lender registration, ownership disclosure, compliance with data protection standards, and adherence to fair lending and debt recovery practices. In the past, the Commission has ordered the removal of several non-compliant loan applications from app stores and sanctioned operators found to engage in unlawful practices, including public shaming and threats.
The current enforcement phase represents a significant step towards strengthening regulatory oversight, restoring consumer trust, and supporting responsible operators in the sector. The FCCPC reaffirmed its commitment to transparent regulation, fair competition, and effective consumer protection, warning that defaulting operators will face sustained regulatory scrutiny until full compliance is achieved.
This newsletter is prepared for informational purposes only. Stakeholders are advised to consult official FCCPC publications for regulatory verification.
