TROUBLE LOOMS FOR ONLINE LOANS OPERATORS

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As President Tinubu’s administration is striving to stabilise  the economy, no sector of the economy is left untouched, the Central Bank of Nigeria  is counting down on the Banks Capitalization while the Federal  Competition and Consumer Protection Commission (FCCPC) is  also counting down on the Online Loan App Platforms.

 

The digital lending market is in  a decisive new phase as the Federal Competition and Consumer Protection Commission (FCCPC) formally rolled out enforcement actions against defaulting digital money lenders with the compliance deadline of January 5, 2026. The message is blunt and unmistakable, operators who failed to regularise their status under the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations) will no longer operate in regulatory limbo. This was contained in the Press Release released by the Commission recently and discovered on their site.

 

The FCCPC has a  statutory mandate to regulate, supervise, and sanitise the digital lending ecosystem. The Commission is empowered to license and register digital lenders, set and enforce consumer protection standards, prevent abusive and deceptive lending practices, ensure transparency in loan terms, and protect borrowers from harassment, data abuse, and unfair competition. Through its regulatory oversight, the FCCPC also maintains a public register of approved digital lenders, engages technology platforms and payment service providers, and applies sanctions where operators undermine market integrity or consumer welfare. In essence, the Commission serves as both referee and enforcer in Nigeria’s fast-growing online credit market.

 

Explaining the rationale behind the enforcement measures, FCCPC Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, stressed that the actions are not punitive for their own sake but necessary to preserve order and certainty in the market. According to him, the compliance window provided under the DEON Regulations has closed, and the Commission is now duty-bound to act in a manner that is fair, orderly, and consistent with due process. The goal, he emphasised, is to promote discipline, transparency, and consumer confidence, while allowing legitimate operators to thrive.

 

As part of the enforcement framework, the FCCPC has withdrawn the conditional approvals earlier granted to digital money lenders that failed to complete their regularisation within the transitional period. These defaulting operators have consequently been delisted from the Commission’s official register of approved digital lenders, effectively stripping them of regulatory recognition until they comply with the law.

 

Mr. Bello underscored the importance of the FCCPC’s register as a critical consumer protection tool. He warned that the list is designed to guide the public toward lenders that have met regulatory requirements and advised consumers to exercise extreme caution when dealing with platforms that do not appear on the Commission’s current approved register.

 

Beyond delisting, the Commission has intensified structured engagement with app hosting platforms and payment service providers as part of its broader enforcement and compliance monitoring strategy. These steps, the FCCPC noted, are being carried out strictly in line with the law and established regulatory procedures.

 

For operators granted provisional eligibility under transitional arrangements, the Commission has set April 2026 as the final deadline to regularise their operations under the DEON Regulations. Those who fail to do so, Mr. Bello warned, risk facing further regulatory sanctions as provided by law.

 

Ultimately, the FCCPC insists that its enforcement drive is about restoring discipline to the digital lending space, protecting compliant businesses from unfair competition, and shielding Nigerian consumers from abusive, deceptive, and unlawful lending practices. As the Commission reaffirmed its commitment to transparency, fair competition, and consumer protection, one thing is clear,  Nigeria’s digital lending market is no longer a free-for-all, and regulatory compliance is no longer optional.