The Federal Government has introduced the Electronic, Online, or Non-Traditional Consumer Lending Regulations (Consumer Lending Regulation) 2025 to tackle persistent grievances regarding the operations of Digital Money Lenders and Mobile Money Operators (MMOs), commonly referred to as loan sharks.
Ondaje Ijagwu, the Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission (FCCPC), made this announcement in a statement released on Wednesday.
Operators who fail to comply with these new regulations will face sanctions, which could include hefty fines of up to N100 million or 1 percent of their turnover, alongside the severe possibility of disqualifying directors for a period of up to five years.
The FCCPC stated that these regulations will become effective from July 21, 2025.
During the announcement of the gazetting and initiation of the regulations in his office in Abuja on Wednesday, the Commission’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, emphasized that the guidelines aim to mitigate data breaches, harassment, and other unethical practices perpetrated by digital money lenders in Nigeria.
“For a prolonged period, Nigerians have had to endure harassment, data violations, and unethical conduct from unregulated digital lenders. These regulations establish a definitive boundary asserting that innovation is acceptable, but not at the cost of the rights and dignity of consumers or the principles of law.”
“These regulations equip us with the legal instruments necessary to hold transgressors accountable and foster responsible digital finance. No consumer should face harassment, defamation, or be coerced into precarious debt under the veneer of digital lending,” he elaborated.
The Commission specified that the regulations ban pre-authorized or automatic loan disbursals, compel transparency with clear and accessible loan terms, outlaw unethical marketing tactics, and require that at least one service provider involved in airtime and data lending is locally owned.
Joint registration of all lending partnerships will be mandatory and exclusive agreements based on monopolistic practices are forbidden without prior approval from the Commission.
Under the stipulations of the new regulations, all digital lenders are required to register with the FCCPC within a 90-day window from the initiation date.
Approval hinges on adherence to consumer protection, data compliance, and transparency benchmarks.
“The FCCPC invites all existing and prospective providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and associated service partners, to visit www.fccpc.gov.ng for application forms, guidelines, and compliance details,” the FCCPC assessed.
These regulations will impact operators in the realm of digital lending services, including Mobile Money Operators (MMOs) and Digital Money Lenders (DMLs) such as FairMoney, Carbon, PayLater, Okash, Aella, among others in Nigeria.
Recall that the FCCPC had hinted in 2023 about a forthcoming comprehensive regulatory framework for digital lenders.
