The Federal Competition and Consumer Protection Commission (FCCPC) has commenced a phased enforcement action against digital money lending operators that failed to comply with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations (DEON), 2025.
The compliance deadline for all affected operators expired on January 5, 2026. In a statement issued on Wednesday, the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, said the crackdown is aimed at strengthening regulatory certainty and restoring public confidence in Nigeria’s fast-growing digital lending sector.
Ijagwu explained that the enforcement drive follows the conclusion of a transition period granted to operators to regularise their operations under the new regulatory framework.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the measures are intended to protect consumers from exploitative practices while promoting fair competition within the industry.
“The compliance window has closed. We are now proceeding with enforcement in a fair and orderly manner,” Bello said. “The goal is discipline, transparency, and consumer confidence, not disruption of legitimate business.”
As part of the enforcement process, the Commission has withdrawn conditional approvals previously granted to digital lenders that failed to meet registration and compliance requirements within the stipulated time frame.
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These operators have also been removed from the FCCPC’s official register of approved digital lenders and will remain delisted until they fully comply with the regulations.
Bello described the FCCPC register as a critical consumer protection tool that allows Nigerians to verify lenders that meet regulatory standards. He warned consumers to exercise caution and avoid engaging with digital lenders that are not listed on the Commission’s register.
In addition, the FCCPC has begun engaging app hosting platforms and payment service providers as part of efforts to ensure compliance across the digital lending ecosystem.
For operators that were provisionally cleared under transitional arrangements, the Commission has set a new deadline of April 2026 to complete full registration. Operators that fail to meet this deadline risk further regulatory sanctions.
Nigeria’s digital lending market has expanded rapidly in recent years, driven by increased smartphone penetration and limited access to traditional bank credit.
However, the sector has also been dogged by widespread complaints, including excessive interest rates, unclear loan terms, borrower harassment, privacy breaches, and unlawful debt recovery practices such as public shaming.
The FCCPC said the ongoing enforcement exercise is designed to curb these abuses, protect compliant businesses from unfair competition, and create a predictable and transparent regulatory environment.
The Commission reaffirmed its commitment to effective consumer protection, fair competition, and transparent oversight as Nigeria’s digital economy continues to grow.