FG Begins Fresh Regulations for Loan Apps, Bans Harassment of Customers, Automatic Lending
The Federal Competition and Consumer Protection Commission (FCCPC) has announced a new government approved regulations for Digital Money Lenders and Mobile Money Operators (MMOs).
The new regulation tagged the Electronic, Online, or Non-Traditional Consumer Lending Regulations (Consumer Lending Regulation) 2025, according to a statement issued by Director Corporate Affairs of the FCCPC, Mr. Ondaje Ijagwu is aimed at addressing a plethora of complaints concerning the activities of Digital Money Lenders and Mobile Money Operators (MMOs) popularly known as loan apps.
According to the statement, Non-compliant operators of the new regulations will face sanctions, which include fines of up to N100 million or 1 per cent of turnover, as well as potential disqualification of directors for up to five years
Announcing the commencement of the regulations in his office in Abuja on Wednesday, the Executive Vice Chairman/Chief Executive Officer of FCCPC, Mr. Tunji Bello said the guidelines would address data breaches, harassment and other unethical practices by digital money lenders in Nigeria.
According to the FCCPC boss, “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.”
In the new regulation, operators are prohibited from pre-authorised or automatic lending. The new regulations also compels clear and accessible loan terms, ban unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending services.
The new regulation also requires all digital lenders to register with the FCCPC within 90 days of commencement.
The FCCPC stated that approval will strictly depend depend on meeting consumer protection, data compliance, and transparency standards.
According to the commission, “The FCCPC urges all current and intending providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners, to visit www.fccpc.gov.ng for application forms, guidelines, and compliance requirements.”
