A total of 521 digital lender companies has now come under the regulatory purview of the Federal Competition and Consumer Protection Commission (FCCPC) as the consumer watchdog intensifies efforts to sanitize Nigeria’s fast-growing digital credit market.
The development follows the January 5, 2026, deadline for compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
The FCCPC had directed all digital lenders—whether app-based, online, or operating through other non-traditional channels—to register with the Commission and comply with the new rules.
According to the Commission’s database, out of the 521 registered companies, 457 have received full approval, while 35 secured conditional approval.
Another 29 lenders licensed by the Central Bank of Nigeria (CBN) remain under FCCPC’s regulatory framework.
Despite the large number of registered lenders, the Commission disclosed that 103 loan apps operated by unregistered companies have been placed under its watchlist for regulatory actions.
The FCCPC has repeatedly warned that any digital lender operating outside its approval framework risks sanctions, including delisting of loan apps from digital platforms, monetary penalties, and possible prosecution.
Industry stakeholders say the rise to 521 registered digital lenders highlights the scale of Nigeria’s consumer credit market but raises questions about effective supervision.
Financial analyst Adewale Adeoye noted: “Monitoring over 500 registered companies alone require a lot of capacity, yet there are hundreds of others operating illegally that need to be dealt with.”
He added that beyond loan apps, the new guidelines expand FCCPC’s oversight to lenders not using apps, which could make enforcement more challenging.
President of the Money Lenders Association (MLA), Gbemi Adelekan, also acknowledged that enforcement could be overwhelming for the FCCPC because of the number of players.
“We have raised the issue with them, but they said they are prepared. They are very responsive now, but when more issues start coming up, will they still be as responsive? Only time will tell,” Adelekan said.
Key Provisions of the 2025 Regulations
The regulations establish a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.
Applicable to all unsecured consumer lending conducted through electronic, online, mobile, or other non-traditional means, the rules set out requirements for registration, transparency, data privacy, ethical recovery, fair interest rates, and responsible lending.
Highlights include:
- Ban on pre-authorized or automatic lending.
- Clear and accessible loan terms.
- Prohibition of unethical marketing.
- Mandatory local ownership of at least one service provider for airtime and data lending.
- Joint registration of lender partnerships.
- Ban on monopolistic agreements without prior FCCPC approval.
- Prohibition of apps accessing contact lists, pictures, or transactions of customers.
The regulation, effective July 21, 2025, under the FCCPA 2018, seeks to promote fairness, transparency, and accountability across Nigeria’s digital lending ecosystem.
Sanity Returning to the Market
Adelekan said complaints from customers have reduced since the new rules took effect.
He noted, however, that some Nigerians exploit the pro-consumer regulations by borrowing from multiple platforms without repaying.
“We have seen someone who has taken loans from 35 different platforms without repaying and still applying to other platforms. This is why we have been telling our members to use the credit bureau and make sure their returns are done regularly,” he said.
The credit bureau is now improving its services to ensure that credit reports are made available in real time.
What You Should Know
The new FCCPC regulation builds on the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, which made registration mandatory for all digital money lenders.
Despite earlier efforts, harassment and defamation of borrowers remained rampant. Sanctions under the old framework included delisting apps from the Google Play Store, but many lenders continued to operate outside the Play Store using APKs.
Under the 2025 regulations, non-compliant digital lenders face sanctions, including fines of up to ₦100 million or 19% of turnover, as well as potential disqualification of directors for up to five years.
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