The Federal Government has officially gazetted the Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025, a sweeping framework to curb the excesses of Digital Money Lenders (DMLs) and Mobile Money Operators (MMOs), popularly called loan sharks.
The Federal Competition and Consumer Protection Commission (FCCPC) announced the commencement of the regulations on July 21, 2025, with stiff penalties for violators.
Key Provisions
Fines & Penalties: Non-compliant operators face sanctions of up to ₦100 million or 1% of annual turnover, while directors risk disqualification for up to five years.
Consumer Rights Protection: Ban on harassment, defamatory debt recovery tactics, and unauthorised data access.
Operational Restrictions: Prohibition of pre-authorised/automatic lending and unethical marketing.
Transparency & Compliance: Mandatory clear loan terms, data protection standards, and full disclosure of charges.
Local Ownership: At least one service provider must be locally owned for airtime and data lending services.
Joint Registration: All digital lender partnerships must register jointly with the FCCPC, while monopolistic or dominance-based agreements are barred without approval.
Digital lenders, including FairMoney, Carbon, PayLater, Okash, Aella, and others, are required to register with the FCCPC within 90 days of the regulations’ commencement. Approval will depend on meeting consumer protection, data compliance, and transparency standards.
Why It Matters
Speaking in Abuja, FCCPC CEO Tunji Bello stressed that the rules aim to end years of abusive practices by unregulated digital lenders:
“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 consumer rights or the rule of law.”
The Commission urged all providers to visit www.fccpc.gov.ng for guidelines and compliance requirements.
This move comes as part of the government’s broader effort to sanitise Nigeria’s digital finance space, protect consumers from predatory lending, and encourage responsible fintech innovation.
