Nigeria’s digital lending sector has entered a new phase of regulatory oversight, with 521 companies now officially registered with the Federal Competition and Consumer Protection Commission. The registration follows the January 5, 2026, deadline for compliance with the Digital, Electronic, Online, and Non-Traditional Consumer Lending Regulations, 2025, marking a significant step toward accountability and consumer protection in the rapidly growing industry.
The FCCPC required all digital lenders, whether app-based, online, or operating through alternative channels, to register and comply with the regulations. Of the registered companies, 457 have received full approval, 35 have conditional approval, and an additional 29 companies licensed by the Central Bank of Nigeria are now under FCCPC supervision. The Commission has placed 103 non-compliant loan apps on a watchlist, warning that failure to comply could result in sanctions ranging from fines to app delisting and possible prosecution.
Financial analyst Adewale Adeoye noted that overseeing such a large sector is a significant challenge. He explained that monitoring over 500 registered companies, while also addressing hundreds of unregistered lenders, will require robust regulatory capacity. Gbemi Adelekan, President of the Money Lenders Association, added that the inclusion of IT platforms supporting digital lenders adds further complexity to enforcement, though the FCCPC has shown responsiveness to emerging issues.
The 2025 regulations provide a comprehensive legal framework for digital and non-traditional lending. They cover unsecured consumer loans offered through electronic, mobile, or online channels and set standards for transparency, ethical recovery practices, fair interest rates, and clear loan terms. The rules prohibit pre-authorized lending and unethical marketing, require local ownership of service providers for airtime and data-based loans, mandate joint registration for lender partnerships, and ban unauthorized access to customers’ personal data.
Implemented under the Federal Competition and Consumer Protection Act of 2018, the rules became effective on July 21, 2025, with enforcement beginning after the January 5 compliance deadline. Non-compliant lenders face fines of up to N100 million or 19 percent of turnover, and directors may be disqualified for up to five years.
Industry observers report that the new regulations are already improving the digital lending landscape, reducing consumer complaints, though some borrowers continue to exploit the system by borrowing from multiple platforms simultaneously. The use of credit bureau data and real-time reporting is recommended to mitigate these risks.
The strengthened oversight aims to balance sector growth with consumer protection, providing a safer environment for MSMEs and entrepreneurs who increasingly rely on digital credit to finance their businesses. The regulatory framework is expected to foster trust in digital financial services, ensure responsible lending practices, and support sustainable growth in Nigeria’s emerging fintech and small business ecosystem.
