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Nigeria Unveils Consumer Lending Regulation 2025 To Curb Loan Sharks – FCCPC

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3 weeks ago

September 3, 2025

Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission, FCCPC,

The Nigerian government has unveiled the Electronic, Online, or Non-Traditional Consumer Lending Regulations (Consumer Lending Regulation) 2025, which addresses longstanding complaints concerning the activities of Digital Money Lenders and Mobile Money Operators (MMOs) popularly known as loan sharks.

Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission, FCCPC, disclosed this in a statement on Wednesday.

Non-compliant operators of the new regulations face sanctions, which include fines of up to N100 million or 1 per cent of turnover, as well as potential disqualification of directors for up to five years.

FCCPC said the regulations take effect from July 21, 2025.

Announcing the gazetting and commencement of the regulations in his office in Abuja on Wednesday, the Commission’s Executive Vice Chairman/Chief Executive Officer, Mr Tunji Bello said the guidelines would address data breaches, harassment and other unethical practices by digital money lenders in Nigeria.

“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.

“These regulations provide the legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” he added.

The Commission said the regulations prohibit pre-authorised or automatic lending, compel clear and accessible loan terms, ban unethical marketing, and
mandate local ownership of at least one service provider for airtime and data lending services.

It also requires joint registration of all lender partnerships and prohibits monopolistic or dominance-based agreements without the Commission’s approval.

According to the provisions of the regulations, all digital lenders must register with the FCCPC within 90 days of commencement.

Approval is dependent on meeting consumer protection, data compliance, 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 FCCPC stated.

The regulations affect operators of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders
(DMLS) such as FairMoney, Carbon, PayLater, Okash, Aella and others in Nigeria.

Recall that the FCCPC had in 2023 hinted of a plan to unveil comprehensive regulations for digital lenders.