FCCPC goes after violators of digital lending rules

IT will no longer be business as usual for Digital Money Lending (DML) operators – the Federal Competition and Consumer Protection Commission (FCCPC) has clamped down on those violating the rules guiding digital lenders.

The operators had earlier been given a January 5 deadline to regularise in accordance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).

They have till April to perfect their operations.

FCCPC Executive Vice Chairman/Chief Executive Officer (EVC/CEO) Tunji Bello said the actions were necessary to give effect to the regulations and to maintain regulatory certainty in Nigeria’s digital lending market which is in line with the Commission’s statutory mandate.

A statement issued in Abuja yesterday by the commission quoted Bello as saying: “The compliance window provided under the Regulations has now closed. At this stage, the commission is proceeding with appropriate enforcement steps in a manner that is fair, orderly, and consistent with due process, the objective is to promote discipline, transparency, and consumer confidence within the digital lending space, not to disrupt legitimate business activity.

“As part of the approved enforcement framework, the Commission has withdrawn the conditionally approved status previously granted to certain DML operators that did not complete the required regularisation process within the transitional period.

“Consequently, such operators have been removed from the FCCPC’s published register of approved digital lenders, pending compliance with applicable regulatory requirements.”

Mr. Bello noted that the Commission’s published register serves as an important consumer information tool. This register is intended to guide the public on operators that have met the applicable regulatory requirements as at the time of publication.

“Consumers are advised to exercise caution when dealing with digital lenders that do not appear on the Commission’s current list of approved operators,” the EVC/CEO said.

According to him, the commission has also commenced structured engagement with relevant application hosting platforms and payment service providers, consistent with its statutory functions, as part of ongoing enforcement and compliance monitoring activities.

The statement further reads: “Further regulatory steps will be undertaken in accordance with law and established procedures.

“For those provisionally designated as eligible under transitional arrangements, the Commission has issued a deadline of April 2026 to regularise their registration under the DEON Regulations.

“This window is provided to enable affected operators to take steps towards compliance. Operators that choose not to regularise their status within this period may be subject to further regulatory measures, as provided under the law.”

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The commission emphasised that the ongoing enforcement process is intended to support market discipline, protect compliant operators from unfair competitive practices, and safeguard consumers from abusive, deceptive, or unlawful conduct. Effective regulation depends on consistent application. Compliant businesses deserve a predictable regulatory environment, and consumers are entitled to protection under the law.

The commission reaffirmed its commitment to transparent regulation, fair competition, and effective consumer protection across Nigeria’s digital economy.