ABUJA — The Federal Government has rolled out tough new regulations to rein in the excesses of digital money lenders and mobile money operators, popularly called loan sharks, following years of complaints from Nigerians about harassment, data breaches, and unethical practices.
The Electronic, Online, or Non-Traditional Consumer Lending Regulations (Consumer Lending Regulation) 2025 were officially unveiled on Wednesday by the Federal Competition and Consumer Protection Commission (FCCPC).
Ondaje Ijagwu, FCCPC’s Director of Corporate Affairs, confirmed the development in a statement, while the Commission’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, announced that the regulations would take effect from July 21, 2025.
Under the new law, non-compliant operators risk heavy sanctions, including fines of up to ₦100 million or 1% of turnover, alongside the possible disqualification of directors for up to five years.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers or the rule of law,” Bello declared.
The rules ban pre-authorised or automatic lending, compel digital lenders to provide clear loan terms, outlaw unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending services. They also require joint registration of all lender partnerships and forbid monopolistic agreements without FCCPC approval.
All digital lenders, including popular platforms such as FairMoney, Carbon, PayLater, Okash, and Aella, must register with the FCCPC within 90 days of commencement, with approval dependent on compliance with consumer protection, data security, and transparency standards.
“The FCCPC urges all current and intending providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners, to visit www.fccpc.gov.ng for application forms, guidelines, and compliance requirements,” the statement added.
The move follows earlier hints by the Commission in 2023 about introducing stricter regulations to sanitize Nigeria’s booming digital lending space.
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