The Federal Competition and Consumer Protection Commission (FCCPC) has begun enforcement actions against digital money lenders operating in Nigeria, following the end of a compliance deadline set by the Commission.
The move is part of efforts to regulate the fast-growing digital lending sector and protect Nigerians from unfair and abusive lending practices, especially those linked to online loan applications.
In a statement released on Wednesday, the FCCPC spokesperson, Ondaje Ijagwu, said the enforcement is being carried out in phases and is targeted at Digital Money Lending (DML) operators that failed to regularise their operations under the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, also known as the DEON Regulations.
The Commission had earlier given digital lenders up to Monday, 5 January 2026, to comply fully with the new rules.
Speaking on the start of enforcement, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, said the action became necessary now that the compliance window has closed.
According to him, the goal is not to shut down genuine businesses but to ensure order, fairness, and consumer protection in Nigeria’s digital lending market.
“The compliance window provided under the Regulations has now closed,” Bello said. “At this stage, the Commission is proceeding with appropriate enforcement steps in a manner that is fair, orderly, and consistent with due process.”
He explained that the regulations were designed to bring clarity and stability to a sector that has grown rapidly but often without proper oversight.
“The objective is to promote discipline, transparency, and consumer confidence within the digital lending space, not to disrupt legitimate business activity,” Bello added.
In recent years, digital money lending has expanded rapidly in Nigeria. Many Nigerians now rely on loan apps and online platforms to access quick loans for personal needs, small businesses, and emergencies.
These platforms often promise fast approval, little paperwork, and easy access to funds. However, the sector has also been linked to serious consumer complaints.
Several borrowers have accused some loan apps of charging excessive interest rates, using harassment and threats to recover loans, and abusing personal data by contacting friends and family members of borrowers.
These issues led to public outrage and calls for stronger regulation. In response, the FCCPC introduced the DEON Regulations to set clear rules for digital lenders and protect consumers.
As part of the enforcement process, the FCCPC has withdrawn the conditional approval status earlier granted to some digital lenders that failed to complete the required registration and regularisation process within the given time.
These operators have now been removed from the FCCPC’s official register of approved digital lenders.
According to the Commission, this step is important to help consumers identify which digital lenders are operating legally.
“The FCCPC’s register is intended to guide the public on operators that have met the applicable regulatory requirements as at the time of publication,” Bello said.
He advised Nigerians to be careful when dealing with digital lenders that do not appear on the current list of approved operators.
“Consumers are advised to exercise caution when dealing with digital lenders that do not appear on the Commission’s current list of approved operators,” he warned.
The FCCPC’s published register is a key tool for consumer awareness. It allows members of the public to check whether a loan app or online lender has met the basic legal and regulatory requirements to operate in Nigeria.
Being listed means that a digital lender has provided necessary information, agreed to follow consumer protection rules, and submitted to oversight by the Commission.
Removal from the register does not automatically mean a lender has been shut down, but it signals that the operator is not currently recognised as compliant.
Consumer rights groups have welcomed this step, saying it will help Nigerians make safer choices when seeking loans online.
The FCCPC also disclosed that it has begun structured engagement with application hosting platforms and payment service providers as part of its enforcement strategy.
This includes discussions with companies that host loan apps and those that provide payment services to digital lenders.
According to the Commission, this approach is in line with its legal powers and will support compliance monitoring.
“Further regulatory steps will be undertaken in accordance with law and established procedures,” the statement said.
This suggests that loan apps that fail to comply could face restrictions beyond removal from the register, including limits on access to app stores or payment systems.
For digital lenders that were given provisional approval under earlier transitional arrangements, the FCCPC has set a new deadline of April 2026 to fully regularise their status under the DEON Regulations.
Bello said this grace period is meant to give affected operators enough time to meet the requirements and continue operating legally.
“This window is provided to enable affected operators to take steps towards compliance,” he said.
However, he warned that operators who ignore this opportunity may face tougher regulatory action.
“Operators that choose not to regularize their status within this period may be subject to further regulatory measures, as provided under the law,” Bello stated.
The FCCPC stressed that the enforcement exercise is not only about compliance but also about fairness in the market.
According to the Commission, unregistered or non-compliant lenders often gain unfair advantage by ignoring rules that others follow.
By enforcing the regulations, the FCCPC aims to protect responsible digital lenders from unfair competition and ensure that all operators play by the same rules.
“The ongoing enforcement process is intended to support market discipline, protect compliant operators from unfair competitive practices, and safeguard consumers from abusive, deceptive, or unlawful conduct,” Bello said.
He added that consistent regulation is essential for the long-term health of the digital lending sector.
“Effective regulation depends on consistent application. Compliant businesses deserve a predictable regulatory environment, and consumers are entitled to protection under the law,” he said.
For millions of Nigerians who depend on digital loans, the FCCPC’s action could lead to safer borrowing and fewer cases of abuse.
However, borrowers are advised to remain cautious, check the FCCPC’s approved list, and fully understand loan terms before accepting any digital loan offer.
