The Federal Government has rolled out strict regulations for digital lenders, with fines up to ₦100 million.
Authorities say the rules will protect Nigerians from harassment, predatory loans, and data misuse.
The Federal Government has introduced tough new regulations to sanitize Nigeria’s booming digital lending sector, warning operators that defaulters now face penalties of up to ₦100 million, or 1% of their annual turnover, along with potential bans on company directors for up to five years.
The regulations, known as the 2025 Electronic, Online, and Non-Traditional Consumer Lending Regulations, went into effect on July 21, 2025. They cover Digital Money Lenders (DMLs), Mobile Money Operators (MMOs), and other related service providers.
Announcing the development in Abuja on Wednesday, the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, said the move was designed to curb harassment, data breaches, and predatory lending.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said. “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.”
He stressed that borrowers must not be “harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” adding that the new framework will enforce responsible practices across the industry.
The FCCPC explained that the rules specifically:
- Prohibit automatic or pre-authorized lending,
- Outlaw unethical advertising and marketing tactics,
- Require clear and accessible loan terms,
- Compel joint registration of partnerships, and
- Mandate local ownership in airtime and data lending ventures.
As stated by Ondaje Ijagwu, the Director of Corporate Affairs at the FCCPC, all digital lenders are required to register within 90 days after the law takes effect. Approvals will be granted only to operators that meet strict standards for consumer protection, data privacy, and transparency.
The regulations directly affect platforms such as FairMoney, Carbon, PayLater, Okash, Aella, and others that dominate the Nigerian digital finance landscape. Operators have been urged to apply through the FCCPC website to avoid sanctions.
