Court clears FCCPC to enforce digital lending regulations

By Abubakar Yunus

The Federal Competition and Consumer Protection Commission has resumed the implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, following a Federal High Court judgment affirming its powers to regulate Nigeria’s digital lending sector.

The development followed Monday’s judgment by Justice A.L. Allagoa of the Federal High Court in Lagos in Suit No. FHC/L/CS/760/2026 filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte.

The court dismissed the plaintiff’s originating summons in its entirety, refused all the reliefs sought and upheld the validity of the regulations.

Justice Allagoa ruled that the regulations were issued within the FCCPC’s statutory and constitutional powers and were therefore valid.

The court also upheld the specific provisions challenged by WASPAN and discharged the interim ex parte order that had restrained the commission from implementing and enforcing the regulations.

The ruling clears the legal hurdle that forced the FCCPC to suspend enforcement of the regulations after the interim order was issued in April 2026.

Reacting to the judgment, the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, said the agency had always respected the rule of law throughout the legal process.

“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive.”

He added that the commission would immediately resume its statutory responsibilities following the court’s decision.

“Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.”

Ijagwu said the regulations were introduced to promote responsible lending, strengthen accountability among digital lenders and protect consumers from exploitative practices.

“The DEON Regulations are designed to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market.”

He added that the commission remained committed to creating a transparent regulatory environment that supports innovation, financial inclusion and investor confidence while safeguarding consumer rights.