The Federal Competition and Consumer Protection Commission (FCCPC) is poised to take action against 103 unregistered digital loan applications following the expiration of a major regulatory deadline, in a sweeping move to clean up Nigeria's rapidly expanding—and often controversial—consumer credit market.
The January 5, 2026, deadline marked the final day for digital lenders to comply with the FCCPC’s Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025. According to newly released data, 521 lending companies have now been brought under the commission's oversight. Of these, 457 have received full approval to operate, while 35 have conditional approval. An additional 29 lenders licensed by the Central Bank of Nigeria (CBN) also fall under the new regulatory framework.
The 103 apps on the watchlist, operated by unregistered companies, now risk severe penalties, including delisting from app stores, fines of up to ₦100 million, and potential prosecution of their directors.
A Push for Consumer Protection
The 2025 regulations establish a comprehensive legal framework designed to curb widespread malpractice in the digital lending sector. Key provisions include:
* Mandatory registration with the FCCPC.
* Clear disclosure of all loan terms and fees.
* Strict data privacy rules that prohibit apps from accessing borrowers' contact lists, photos, or transaction histories.
* A ban on unethical debt recovery practices, including harassment and defamation.
* Restrictions on automatic loan disbursements without explicit borrower consent.
The rules aim to address long-standing complaints from Nigerians about predatory lending, exorbitant interest rates, and aggressive—often shame-based—recovery tactics by some digital lenders.
Enforcement Challenges Ahead
While industry stakeholders have welcomed the regulations, concerns are emerging about the FCCPC's capacity to effectively monitor such a large and dynamic sector. Supervising over 500 registered entities, alongside an untold number of illegal operators, could strain the commission's resources.
Gbemi Adelekan, President of the Money Lenders Association (MLA), acknowledged the FCCPC's active engagement but noted the real test will come with the volume of disputes and compliance issues expected to arise. "Enforcement could be overwhelming given the sheer number of players," Adelekan stated, according to a Nairametrics report.
He did, however, observe a positive early impact, noting a reduction in borrower complaints since the rules were introduced, suggesting "some sanity is returning to the sector."
The FCCPC has warned that enforcement actions against non-compliant lenders have begun. The commission's broader goal is to bring lasting order to a market that has grown rapidly in response to high credit demand but has been marred by significant consumer abuse.
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