The Federal Competition and Consumer Protection Commission (FCCPC) has officially commenced enforcement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (2025), a new framework aimed at sanitizing Nigeria’s troubled loan-app ecosystem.
For years, Nigerians have decried the predatory practices of digital moneylenders, ranging from harassment of borrowers, invasion of privacy through unauthorized data sharing, abusive debt recovery tactics, to defamation campaigns via bulk SMS and social media exposure. A 2022 FCCPC investigative sweep found that more than 90 unlicensed loan apps were operating in Nigeria, many of them registered under shell companies without traceable addresses.
The 2025 regulations now mandate that all lending platforms must obtain a valid FCCPC license, maintain transparent interest rates and repayment terms, and adhere strictly to Nigeria’s Data Protection Act. Apps found guilty of non-compliance risk hefty fines, blacklisting, or outright removal from Google Play Store and Apple’s App Store. Already, the FCCPC has flagged several operators for possible sanctions, while granting others a compliance window.
Consumer protection analysts note that the move could restore public confidence in digital lending, a sector estimated at ₦250 billion ($163 million) in market size as of 2024, but heavily tainted by abuse. However, critics caution that strict enforcement might temporarily shrink access to quick loans, especially among low-income Nigerians who rely on micro-lending apps for survival.
Past occurrences suggest the battle will be complex. In 2021, a joint FCCPC, CBN, and ICPC task force shut down several “loan shark” offices in Lagos, but within months, many resurfaced online under new names. Experts argue that only sustained monitoring, financial literacy campaigns, and stronger collaboration with Google and fintech regulators can make the 2025 framework effective.
For now, the FCCPC says it remains committed to ensuring that Nigeria’s digital lending space balances financial inclusion with consumer dignity and safety.
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