FCCPC cracks down on erring digital loan operators

By Abubakar Yunusa

The Federal Competition and Consumer Protection Commission (FCCPC) has commenced a phased enforcement against digital money lenders (DMLs) that failed to regularise their status under the 2025 digital, electronic, online and non-traditional consumer lending regulations.

The regulations were introduced in 2025 to curb harassment, data breaches, and other exploitative practices in Nigeria’s digital lending space.

The FCCPC had set January 5, 2026, as the deadline for full compliance with the rules, warning that enforcement actions would begin immediately after the deadline.

The commission directed all affected operators, including digital lending platforms, service partners, and intermediaries, to complete their compliance obligations by the deadline.

In a statement on Wednesday, Ondaje Ijagwu, director of corporate affairs at the FCCPC, said the commission had withdrawn the conditional approvals earlier granted to some DML operators that failed to complete the regularisation process within the transitional period.

“Consequently, such operators have been removed from the FCCPC’s published register of approved digital lenders, pending compliance with applicable regulatory requirements,” Ijagwu said.

Tunji Bello, the executive vice-chairman and chief executive officer (CEO) of the FCCPC, said the enforcement was necessary to give effect to the regulations and maintain regulatory certainty in Nigeria’s digital lending market.

“The compliance window provided under the Regulations has now closed. At this stage, the Commission is proceeding with appropriate enforcement steps in a manner that is fair, orderly, and consistent with due process,” Bello was quoted as saying.

“The objective is to promote discipline, transparency, and consumer confidence within the digital lending space, not to disrupt legitimate business activity.”

He said the commission’s published register serves as an important consumer information tool, urging Nigerians to exercise caution when dealing with lenders that do not appear on its current list of approved operators.

“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,” the FCCPC boss said.

The commission also said it has commenced structured engagement with application hosting platforms and payment service providers as part of its enforcement and compliance monitoring efforts.

Further regulatory actions, the FCCPC said, will be taken in line with the law and established procedures.

For operators provisionally classified as ‘eligible under transitional arrangements’, the commission said it has set April 2026 as the deadline to complete their registration under the DEON regulations.

Advertisement

“This window is provided to enable affected operators to take steps towards compliance. Operators that choose not to regularise their status within this period may be subject to further regulatory measures, as provided under the law,” Bello said.

“Effective regulation depends on consistent application. Compliant businesses deserve a predictable regulatory environment, and consumers are entitled to protection under the law.”

The FCCPC said the enforcement process is aimed at supporting market discipline, protecting compliant operators from unfair competitive practices, and safeguarding consumers from abusive, deceptive or unlawful conduct.

The agency reaffirmed its commitment to fair competition, transparent regulation, and consumer protection across Nigeria’s digital economy.