The Federal Competition and Consumer Protection Commission has rolled out new rules to curb abusive practices by digital lenders accused of harassing borrowers and breaching their privacy.
The competition watchdog, in a statement signed by its director of corporate affairs, Ondaje Ijagwu, on Wednesday, noted that the regulations, which took effect in July, are meant to protect millions of Nigerians who depend on loan apps for quick credit.
The regulations, known as the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, are designed to address exploitative interest rates, privacy breaches, abusive recovery tactics, harassment and anti-competitive practices in the country’s expanding credit market.
Issued under the 2018 consumer protection law, the measures create a framework to safeguard borrowers through transparency, fairness, responsible conduct, data protection and access to redress. The commission said the rules mark a significant step in bringing order to Nigeria’s fast-growing digital lending sector.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” said Tunji Bello, the commission’s chief executive. “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.”
Some Nigerians had complained that some lenders have turned to name-calling and public shaming when loans are not repaid. Messages labelling defaulters as criminals or even announcing them as dead have been sent to relatives, friends and employers. Rights groups have criticised the tactics as harassment and defamation.
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Under the new rules, all digital lenders must register with the FCCPC within 90 days and meet standards on transparency, fair interest rates and ethical debt collection. Companies that fail to comply face fines of up to N100 million or 1 per cent of annual turnover, while directors risk being disqualified from business for up to five years.
The regulations also ban automatic lending without a borrower’s consent, prohibit misleading advertising, and require clear loan terms. Airtime and data lending services must include at least one locally owned partner, and joint ventures must be registered with the commission.
Mr Bello said the measures give regulators “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.”
The commission urged consumers to report unregistered lenders, unfair interest rates or privacy violations through its complaint portal.
