FCCPC Introduces Tough New Regulations To Curb Rogue Loan Companies

The Federal Competition and Consumer Protection Commission (FCCPC) has rolled out strict new regulations to clamp down on rogue digital lenders and sanitise Nigeria’s rapidly expanding online credit market.

The measures, which took effect on July 21, 2025, respond to widespread complaints of harassment, data privacy breaches, exploitative lending, and anti-competitive practices by unregulated operators.

Issued under Sections 17, 18, and 163 of the FCCPC Act (2018), the rules establish a legal framework to protect borrowers while ensuring fair and responsible lending. They mandate transparency in loan terms, ethical recovery practices, fair interest rates, data protection, and accessible redress mechanisms.

Announcing the commencement of the regulations in Abuja, FCCPC’s Executive Vice Chairman/CEO, Tunji Bello, said:

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. 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. These regulations provide the legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”

The framework applies to all unsecured consumer loans offered through electronic, mobile, or other non-traditional channels. Among the key provisions:

• All digital lenders must register with the FCCPC within 90 days.
• Pre-authorised or automatic lending is prohibited.
• Unethical marketing tactics are banned.
• Loan terms must be presented in clear and accessible language.
• Airtime and data lending services must have at least one locally owned provider.
• All partnerships require joint registration.
• Monopolistic agreements are barred without FCCPC approval.

Non-compliant operators face penalties of up to N100 million or 1% of annual turnover, with directors potentially disqualified for up to five years.

The FCCPC has urged consumers to report unregistered lenders, unfair interest rates, or privacy violations via its complaints portal (lenderstaskforce@fccpc.gov.ng), while directing providers to visit www.fccpc.gov.ng for registration and compliance guidelines.

The Commission stressed that the reforms are designed to restore order in the digital credit space, promote financial inclusion responsibly, and protect Nigerians from abuse.