The Federal Government has officially unveiled the Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025, aimed at curbing the excesses of Digital Money Lenders and Mobile Money Operators (MMOs), popularly referred to as loan sharks.
Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission (FCCPC), announced the development in a statement on Wednesday.
Under the new framework, non-compliant operators face stiff sanctions, including fines of up to N100 million or 1 per cent of annual turnover, as well as possible disqualification of directors for as long as five years. The regulations, which were gazetted and came into effect on July 21, 2025, will govern all digital lending practices across Nigeria.
Speaking at the official unveiling in Abuja, FCCPC’s Executive Vice Chairman/Chief Executive Officer, Mr Tunji Bello, said the rules are designed to protect Nigerians from harassment, data breaches, and unethical lending practices.
“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 stated.
He added: “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.”
Key provisions of the regulations include:
- Prohibition of pre-authorised or automatic lending.
- Mandatory clear and accessible loan terms.
- Ban on unethical marketing practices.
- Local ownership requirement for at least one service provider offering airtime and data lending.
- Joint registration of all lender partnerships.
- Ban on monopolistic or dominance-based agreements without FCCPC approval.
The Commission further directed that all digital lenders must register with the FCCPC within 90 days of commencement, with approvals strictly tied to meeting consumer protection, data compliance, and transparency standards.
The regulations apply to operators such as FairMoney, Carbon, PayLater, Okash, Aella and other Digital Money Lenders and MMOs across Nigeria.
The FCCPC urged all operators to visit www.fccpc.gov.ng for application forms, guidelines, and compliance requirements.
Recall that in 2023, the Commission had hinted at plans to release comprehensive regulations to address consumer complaints in the digital lending space.
