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By Uche Usim
Nigeria’s fast-growing digital credit market has officially come under tighter regulatory oversight, with 521 digital lending companies now registered with the Federal Competition and Consumer Protection Commission (FCCPC). The move follows the expiration of the January 5 deadline for full compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, signaling a new era of accountability in the sector.
The Commission had directed all digital lenders, whether app-based, online, or operating through other non-traditional channels, to register and comply with the new regulations on or before the January 5, 2026 deadline.
With the cut-off date now passed, the FCCPC reports a significant increase in companies formally submitting to oversight, reflecting both the sector’s rapid growth and the regulator’s intensified enforcement efforts.
According to FCCPC records, 457 of the 521 registered companies have been fully approved, while 35 received conditional approval. An additional 29 companies, already licensed by the Central Bank of Nigeria (CBN), also fall under the FCCPC’s regulatory framework. Meanwhile, 103 loan apps operating outside the registration system have been placed on the Commission’s watchlist for regulatory actions. The FCCPC has warned that non-compliant lenders risk sanctions ranging from app delisting to monetary penalties and possible prosecution.
The growing number of registered lenders has raised questions about regulatory capacity and effective supervision. Lagos-based financial analyst Adewale Adeoye noted that while the FCCPC is taking steps to clean up the digital lending space, enforcing the rules across more than 500 companies presents a major challenge.
“Don’t forget that the FCCPC’s mandate covers consumer protection across all sectors of the economy, and digital lending is just a part of it. Monitoring over 500 registered companies alone requires significant capacity, and there are hundreds of others operating illegally that also need to be addressed,” Adeoye said. He added that the regulations extend to lenders that do not use apps, which complicates oversight further.
Gbemi Adelekan, President of the Money Lenders Association (MLA), also acknowledged the scale of the challenge. He highlighted that the FCCPC’s new guidelines now cover IT platforms supporting digital lenders, adding another layer to the regulator’s responsibilities.
“We have raised the issues with the Commission, and they say they are prepared. They are very responsive now, but when more issues arise, will they maintain this level of engagement? Only time will tell,” Adelekan said.
The 2025 regulations create a comprehensive legal framework for digital and non-traditional lending, covering unsecured consumer loans offered through electronic, online, mobile, or other non-traditional channels. They outline registration requirements, transparency measures, data privacy standards, ethical recovery practices, fair interest rates, and responsible lending rules.
The regulations also prohibit automatic or pre-authorised lending, require clear and accessible loan terms, ban unethical marketing, and mandate local ownership of at least one service provider for airtime and data-based loans. Joint registration of lender partnerships is required, and monopolistic agreements are prohibited without Commission approval. Access to customers’ contacts, photos, and transactions by loan apps is also banned.
Implemented under the Federal Competition and Consumer Protection Act, 2018, the rules took effect on July 21, 2025. The FCCPC made it clear that enforcement would begin immediately after the January 5 compliance deadline.
Adelekan said the new rules have already started to improve the digital lending landscape. Complaints from customers have declined, though some borrowers continue to exploit the system. “We have seen cases where individuals have taken loans from 35 different platforms without repaying and continue applying to others. This is why we advise our members to use the credit bureau and ensure regular reporting,” he said, noting that credit bureaus are enhancing services to provide real-time credit reports.
The 2025 regulations build on the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending introduced in 2022, which made registration mandatory for all digital money lenders. Despite past efforts, harassment and defamation of borrowers remained widespread, with many lenders bypassing app stores and distributing software through APKs. Under the new rules, non-compliant lenders face fines of up to N100 million or 19% of turnover, and directors may be disqualified for up to five years.
As Nigeria’s digital lending sector continues to expand, the FCCPC’s strengthened oversight aims to balance growth with consumer protection, ensuring that the industry develops responsibly while safeguarding borrowers from exploitation.
