Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has introduced tougher penalties for unethical practices in the country’s fast-growing digital lending sector. Under the newly issued Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, companies now risk fines between $31,250 and $62,500, or 1% of their annual turnover, for violations. The updated framework, released in July, builds on the FCCPC’s 2022 measures aimed at curbing illegal practices and strengthening market oversight.
Targeting a $2.1 Billion Market
The regulations arrive as Nigeria’s $2.1 billion consumer lending market draws increased attention from regulators, mirroring similar efforts in other African nations such as Kenya. The new rules set clear penalty thresholds, replacing previous ad-hoc measures such as office raids, app delistings, and operational suspensions. They also empower the FCCPC to sanction company directors for up to five years if found complicit in misconduct.
Broader Scope and Licensing Requirements
A key feature of the regulation is its broad application to all physical and digital lending entities, including those already licensed in regulated industries. Airtime lending, a major contributor to MTN’s $51.99 million fintech revenue in H1 2025, now falls under FCCPC jurisdiction. While microfinance banks are exempt, they must apply for waivers to avoid compliance obligations.
Fees, Caps, and Renewals
Licence application fees are set at $62.50, with approval fees reaching $625 for mobile money operators such as MTN’s MoMo and Airtel’s SmartCash. Existing digital lenders—461 as of August—will pay $625 for approval, covering only two apps, with additional apps costing $312.50 each and a cap of five apps per owner. Approvals last three years, expiring on December 31 of the third calendar year, and must be renewed by March 31 of the following year, with a $312.50 annual levy.
Stronger Consumer Protections
The regulation puts significant emphasis on customer safety and fair treatment. Lenders are required to avoid unsolicited marketing, provide clear disclosures on all fees, and approve loans only when borrowers can repay. The FCCPC will monitor interest rates to prevent exploitative lending and ensure they align with consumer protection objectives.
Compliance and Reporting Obligations
Operators must comply with the Nigerian Data Protection Act 2023, the Nigerian Communications Act 2003, and other relevant laws. They are required to undergo audits, submit biannual and annual reports, and produce records within 48 hours when requested by the FCCPC. Existing entities have 90 days to align operations with the new requirements.
Industry Reaction
Gbemi Adelekan, president of the Money Lenders Association, welcomed the regulations for bringing stability to the sector but warned they could impact service costs, technology investments, and accessibility. He called for a regulatory framework flexible enough to adapt to evolving consumer needs. Adedeji Olowe, founder of Lendsqr, described the law as a sign of industry maturity, stating that “digital lending isn’t a side hustle anymore—it is part of the financial system, and it is going to be treated that way.”
With these regulations, the FCCPC has signaled its intention to treat digital lending as an integral part of Nigeria’s financial system. By introducing defined penalties, stricter compliance standards, and expanded oversight, the commission aims to protect consumers while formalizing a sector that has historically operated on the fringes of regulation. How lenders adapt over the next 90 days will determine the long-term stability and trust in Nigeria’s consumer lending market.