The Federal Government has introduced the 2025 Electronic, Online, and Non-Traditional Consumer Lending Regulations to address longstanding complaints against Digital Money Lenders (DMLs) and Mobile Money Operators (MMOs), popularly known as loan sharks.
Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission (FCCPC), announced the move in a statement on Wednesday.
Under the new framework, which took effect on July 21, 2025, non-compliant operators face sanctions including fines of up to ₦100 million or 1 per cent of annual turnover, as well as potential disqualification of directors for up to five years.
Speaking at the formal announcement in Abuja, the Commission’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, said the regulations would end abusive practices such as harassment, data breaches, and unethical loan recovery tactics.
“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: “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending. These regulations provide the legal tools to hold violators accountable and promote responsible digital finance.”
Key provisions of the regulations include:
- Prohibition of pre-authorised or automatic lending.
- Mandatory clear and accessible loan terms.
- Ban on unethical marketing practices.
- Requirement for local ownership of at least one service provider for airtime and data lending.
- Joint registration of all lender partnerships.
- Prohibition of monopolistic or dominance-based agreements without FCCPC approval.
The guidelines also require all digital lenders to register with the FCCPC within 90 days of commencement. Approval will depend on compliance with consumer protection, data security, and transparency standards.
The FCCPC urged all providers—including MMOs, DMLs, and their partners—to obtain application forms and compliance details via its official website, www.fccpc.gov.ng.
Operators likely to be affected by the rules include leading digital lenders such as FairMoney, Carbon, PayLater, Okash, and Aella.
The move follows the FCCPC’s earlier announcement in 2023 of plans to introduce comprehensive regulation for the digital lending sector, amid rising public complaints about unethical practices.