Nigeria just rewired the rules of the loan-app game. The Federal Competition and Consumer Protection Commission (FCCPC) has published landmark regulations aimed at ending the epidemic of harassment, privacy invasion and predatory tactics by digital lenders, with penalties of up to ₦100 million (or 1% of turnover) and director disqualifications on the table for the worst offenders. This is the regulatory bite the public has been demanding.
Below is a clear, tight breakdown of what changed, why it matters, what the rules actually say, who stands to lose (and who stands to gain) — plus practical steps every borrower should take today.
What The FCCPC Announced
* The new Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON) were gazetted and have been in effect since 21 July 2025.
* All digital lenders must register with the FCCPC within 90 days, and approval depends on meeting transparency, data-protection and consumer-protection standards.
* Heavy sanctions: non-compliance can attract fines of up to ₦100 million or 1% of turnover, and directors may be disqualified for up to five years.
* The rules ban pre-authorised/automatic lending, prohibit unethical marketing and require at least one locally-owned service provider in airtime/data lending models. They also demand joint registration for lender partnerships and forbid monopolistic tie-ups without prior FCCPC approval.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” FCCPC CEO Tunji Bello said, adding: “These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers or the rule of law.”
Why This Is A big deal (And Why It Matters Now)
Loan-app harassment has been ugly and high-profile: borrowers — already stretched by inflation — reported threats, blackmail, public shaming and aggressive contact of relatives and friends.
The pattern also included opaque fees, hidden rate structures and “pre-approved” loans that activated without clear consent. The new regulations confront those exact practices and aim to make operators legally accountable.
That matters because when consumers lose privacy and dignity, trust in digital finance collapses — and that scuppers financial inclusion. If Nigeria wants a real digital credit market that serves households and MSMEs, it must first stop the abuse.
The Rules — Translated Into Plain English
Here’s what digital lenders must now do (or stop doing) immediately:
* Register with FCCPC within 90 days and submit to transparency, data-protection and consumer-rights standards.
* No pre-authorised/automatic lending. Lenders cannot push loans onto phones or automatically extend credit without a clear, signed consent process.
* Ban on unethical marketing & harassment. Threats, public shaming, contact of third parties for enforcement and other abusive recovery methods are prohibited.
*Local partner requirement for telecom-based lending. Any airtime/data lending model must involve at least one Nigerian-owned service provider — a move aimed at preventing offshore “middlemen” and protecting local data sovereignty.
* Joint registration for partnerships; restrictions on anti-competitive deals. No back-room monopolies — large platforms must declare tie-ups and seek FCCPC approval.
What Happens To Operators Who Ignore The Rules
The FCCPC has teeth: fines up to ₦100m or 1% of turnover, director bans up to five years, and potential disqualification of business models.
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For repeat or severe offenders, enforcement could mean criminal referrals, blacklisting and removal from app stores or telecom platforms, if regulators and platforms cooperate.
What Consumers Should Do ASAP
If a loan app harasses you, follow these steps immediately:
1. Document everything — screenshots of messages, call logs, dates and names.
2. Report the app to FCCPC via their official channels (FCCPC’s X account is active and the Commission has said it will act on tips).
3. Notify your mobile operator if harassment includes persistent SMS/calls from third parties.
4. Ask your bank for fraud/charge disputes if money was taken without consent.
5. Contact consumer groups and local media if you experience public shaming — public pressure matters.
A Watershed Moment, If Enforced
The DEON regulations are the strongest anti-loan-app framework Nigeria has seen: mandatory registration, local-partner rules, bans on pre-approved credit, and heavy fines.
If FCCPC follows through with rigorous enforcement and cross-agency cooperation, this could finally end a shameful chapter of harassment and data abuse.
If the Commission fails, the rules will become yet another unread law. Nigerians will be watching — and they will expect action.
