The Federal Competition and Consumer Protection Commission (FCCPC) has issued a firm directive requiring all digital lending operators in Nigeria to fully comply with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 by Monday, January 5, 2026.
The regulations, which came into effect on July 21, 2025, under the Federal Competition and Consumer Protection Act (FCCPA) 2018, are designed to promote transparency, accountability, and fairness in a sector that has seen explosive growth over the past few years.
The move is part of the Commission’s continuing efforts to sanitize a rapidly expanding digital lending space, following years of widespread complaints about unethical practices, such as unauthorized deductions, aggressive loan recovery, harassment of borrowers, and data privacy breaches.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Guidelines to Aid Compliance
To assist operators in aligning with the new rules, the FCCPC has released a supplementary instrument titled Guidelines on the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025. Developed under Sections 17 and 163 of the FCCPA, the guidelines provide detailed instructions for digital lenders, including updated versions of Forms 1 and 3 and clear documentation requirements.
The FCCPC noted that the updates were created following feedback from industry stakeholders and that operators with pending submissions could proactively provide additional information as required under the new guidelines, without waiting for a formal request.
Mr. Tunji Bello, Executive Vice Chairman of the FCCPC, emphasized the importance of timely compliance.
“Full compliance is not only a legal requirement but a critical step in protecting consumers and ensuring the sector grows fairly and responsibly. Operators have had ample time to adjust to the regulations, and we now expect all obligations to be met before the deadline,” he said.
Bello added that the Commission would continue to process pending applications transparently and promptly, ensuring no operator is unduly delayed in meeting the new compliance standards.
Enforcement and Penalties
The FCCPC has warned that enforcement actions will commence immediately after January 5, 2026. Digital lenders that fail to comply risk being restricted from operating, while their platform partners or service providers may also be ordered to cease dealings. The Commission clarified that other sanctions provided under the law could be applied to non-compliant operators. All affected entities—including lending platforms, intermediaries, and service partners—are required to meet their compliance obligations by the set deadline.
To facilitate transparency, the Commission has made copies of the Guidelines, Forms, and Frequently Asked Questions (FAQs) available on its official website, fccpc.gov.ng, and operators can also access information via FCCPC offices nationwide or other official communication channels.
Growth of the Digital Lending Market and Emerging Risks
Nigeria’s digital lending market has grown rapidly in recent years, fueled by a surge in demand for instant credit among consumers often excluded from traditional banking channels. According to Nairametrics, the number of formally approved digital lending firms increased to 425 by May 2025, up from 320 the previous year.
This expansion has provided new avenues for financial inclusion, offering instant credit access to individuals and small businesses. However, the sector’s growth has also exposed significant consumer protection risks, including high interest rates, aggressive debt collection methods, and weak credit control mechanisms.
The FCCPC’s new regulations and guidelines seek to address these challenges by introducing uniform standards for transparency, fair lending, and borrower protection, while ensuring that operators can continue to innovate and provide services responsibly. The directive also signals the Commission’s commitment to strengthening oversight of digital financial services, balancing sector growth with the protection of vulnerable consumers.
This regulatory push reflects a broader trend in Nigeria and across emerging markets, where digital financial services are expanding rapidly, but regulatory frameworks are struggling to keep pace. Now, the FCCPC aims to instill discipline, restore consumer trust, and reduce the prevalence of predatory practices by enforcing compliance with these guidelines.
For operators, the January 2026 deadline is a critical turning point: failure to comply could result in business restrictions or operational sanctions, while timely adherence may enhance credibility with consumers and investors, ensuring long-term sustainability in a highly competitive market.