The Federal Competition and Consumer Protection Commission (FCCPC) has announced the commencement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation) 2025, designed to address widespread complaints in Nigeria’s fast-growing digital credit market.

The new regulations, which took effect on July 21, 2025, aim to tackle exploitative practices, privacy breaches, unethical loan recovery tactics, harassment, and anti-competitive behaviour by certain operators in the sector.

Speaking at the official gazetting of the regulations in Abuja, FCCPC’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, said the move was necessary to protect consumers who have long endured unfair treatment by unregulated digital lenders.

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. 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,” Bello stated.

He added that the new framework provides the legal backing to hold violators accountable and ensures responsible digital finance practices.

The regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), set out mandatory requirements for transparency, fairness, responsible conduct, data privacy, and accessible redress mechanisms.

Key provisions include: Mandatory registration of all digital lenders within 90 days of commencement. Clear disclosure of loan terms and prohibition of automatic lending. Ban on unethical marketing and abusive debt recovery practices. Requirement for joint registration of lender partnerships.

Local ownership requirements for airtime and data lending providers. Prohibition of monopolistic agreements without prior FCCPC approval.

FCCPC said violators risk sanctions of up to ₦100 million or 1% of turnover, alongside possible disqualification of directors for up to five years. Also urged all digital lending service providers including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners to obtain registration forms and compliance guidelines via fccpc.gov.ng.