The Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria has implemented new rules for online lenders, fining those who engage in unethical behavior ₦50 million for individuals and ₦100 million, or 1% of yearly revenue, for businesses. Directors may also be sanctioned for a maximum of five years.
The commission stated, “Any person or undertaking found to be in contravention of the provisions of these Regulations shall be liable to sanctions, which may include fines, suspension of operations, or delisting of their registration, or revocation of approval”
In July, the FCCPC released the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which expands on the 2022 framework to address unlawful debt recovery practices and harmonizes with regional reforms such as Kenya’s draft credit provider regulations.
All lending organizations are subject to the law, including airtime providers like MTN’s MoMo, with the exception of microfinance banks, which need a waiver.
Operational caps, renewal fees, required licensing, and customer protection guidelines are important clauses. For two apps, approval costs ₦1 million; additional apps cost ₦500,000 each, and licenses are valid for three years.
Additionally, businesses are required to limit advertising, refrain from unsolicited marketing, pay an annual levy of ₦500,000, disclose all fees, and only grant loans to borrowers who are creditworthy.
Lenders must submit biannual reports, submit to audits, comply with data protection and telecom laws, and provide records within 48 hours; existing operators have 90 days to comply; interest rates will be monitored to prevent exploitation.
“The Commission shall periodically monitor interest rate for services of consumer lending, and ensure rates are not exploitative and inimical to consumer interest,” it said.
Although industry leaders praised the regulation’s potential for stability, they cautioned about potential effects on credit availability and service costs.
Gbemi Adelekan, president of the Money Lenders Association (MLA), praised the new rule, saying it aims to protect consumers and create stability in the industry.
“Some of the rules as stated may have a significant impact on the cost of service provision, technology, accessibility of financial services,” he said, which in turn can influence pricing of our services and consumer behaviour”
