FCCPC Begins Enforcement Against Non-Compliant Digital Lenders After January Deadline

FCCPC has finally commenced the enforcement against non-compliant digital lenders after January deadline.

 

NewsOnline Nigeria reports that the Federal Competition and Consumer Protection Commission (FCCPC) has commenced phased enforcement actions against Digital Money Lending (DML) operators that failed to regularise their operations under the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.

 

The compliance deadline for affected operators expired on Monday, January 5, 2026. In a statement issued on Wednesday, the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, said the enforcement drive is aimed at ensuring regulatory certainty and restoring confidence in Nigeria’s rapidly expanding digital lending market.

 

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According to the Commission, enforcement measures are being implemented in phases against operators that did not meet the requirements of the new regulations.

 

Speaking on the development, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the action was necessary to give full effect to the regulations and protect consumers from abusive lending practices.

 

“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 said.

 

He added that the objective of the exercise is to promote discipline, transparency and consumer confidence in the digital lending space, rather than disrupt legitimate business activities.

 

As part of the enforcement framework, the FCCPC has withdrawn the conditional approvals previously granted to some digital lenders that failed to complete the regularisation process within the transitional period. The Commission also confirmed that such operators have been removed from its official register of approved digital lenders, pending full compliance.

 

Bello explained that the FCCPC register serves as a key consumer protection tool, enabling Nigerians to identify lenders that meet regulatory standards. He advised consumers to exercise caution when dealing with digital lenders not listed on the Commission’s current register.

 

The FCCPC also disclosed that it has begun structured engagements with application hosting platforms and payment service providers as part of ongoing enforcement and compliance monitoring efforts. Additional regulatory steps, the Commission said, will be taken in line with the law and established procedures.

 

For operators provisionally designated as eligible under transitional arrangements, the Commission has set April 2026 as the final deadline to regularise their registration under the DEON Regulations. Bello warned that operators who fail to comply within this window may face further regulatory sanctions.

 

The Commission stressed that the enforcement process is intended to strengthen market discipline, protect compliant operators from unfair competition and safeguard consumers from abusive, deceptive or unlawful practices.

 

Nigeria’s digital lending sector has grown rapidly in recent years, driven by increased smartphone usage, mobile internet access and limited access to traditional bank credit. However, the sector has also faced persistent complaints over high interest rates, opaque loan terms, harassment of borrowers, data privacy breaches and unauthorised access to users’ mobile contacts.

 

These concerns led to the introduction of the DEON Regulations, which require digital lenders to register with the FCCPC, disclose ownership structures, comply with data protection standards and adhere to fair lending and debt recovery practices.

 

With the latest enforcement phase, the FCCPC reiterated its commitment to transparent regulation, fair competition and effective consumer protection, warning that defaulting digital lenders will remain under sustained regulatory scrutiny.