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New law targets loan sharks, mobile money operators, and unethical lenders.
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Defaulters risk ₦100m penalty, 1% of turnover, and director bans.
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FCCPC says reforms will end harassment, data breaches, and predatory loans.
The Federal Government has rolled out sweeping regulations to curb unethical practices in Nigeria’s fast-growing digital lending space, warning operators that violations could attract fines of up to ₦100 million or 1% of turnover, alongside disqualification of directors for up to five years.
The rules, known as the 2025 Electronic, Online, and Non-Traditional Consumer Lending Regulations, officially took effect on July 21, 2025, and apply to Digital Money Lenders (DMLs), Mobile Money Operators (MMOs), and related service providers.
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Mr Tunji Bello, Executive Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), announced the gazetting of the law at the Commission’s office in Abuja on Wednesday.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” he declared. “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.”
He added: “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending. These regulations provide the legal tools to hold violators accountable and promote responsible digital finance.”
According to Ondaje Ijagwu, FCCPC Director of Corporate Affairs, the guidelines specifically:
Prohibit pre-authorised or automatic lending,
Ban unethical marketing tactics,
Mandate transparent and accessible loan terms,
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Compel joint registration of lender partnerships, and
Require local ownership of at least one operator in airtime and data lending services.
The Commission emphasised that all lenders must register within 90 days of commencement, with approvals tied to compliance with consumer protection, data security, and transparency standards.
The rules affect operators such as FairMoney, Carbon, PayLater, Okash, Aella, and other digital finance platforms. FCCPC urged all players to apply via its website for registration and compliance requirements.
