September 3, 2025-Published by Cyril
The Federal Government of Nigeria has officially rolled out the Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025, a new framework designed to curb the excesses of Digital Money Lenders (DMLs) and Mobile Money Operators (MMOs), popularly referred to as loan sharks.
The announcement was made on Wednesday by Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission (FCCPC). According to the commission, any operator that fails to comply with the new guidelines faces penalties, including fines of up to ₦100 million or 1% of annual turnover, as well as the possible disqualification of directors for up to five years.
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The regulations officially took effect on July 21, 2025, and aim to tackle issues such as harassment of borrowers, data privacy breaches, unethical marketing, and predatory lending practices that have plagued Nigeria’s digital lending industry.
Speaking in Abuja, the FCCPC’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, said the new guidelines will provide lasting solutions to consumer abuse in the sector.
- “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.
The new rules prohibit:
- Pre-authorised or automatic lending without clear consent.
- Unethical marketing and misleading loan offers.
- Monopolistic or dominance-based agreements without FCCPC approval.
- Loan partnerships without joint registration.
Additionally, the regulations require all digital money lenders to register with the FCCPC within 90 days of commencement. Approval will be subject to compliance with consumer protection, transparency, and data privacy standards.
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Affected operators include popular loan apps and digital lenders in Nigeria such as FairMoney, Carbon, PayLater, Okash, Aella, and others.
The FCCPC urged all providers to visit www.fccpc.gov.ng for application forms, guidelines, and compliance requirements.
This move comes after years of public outcry over the abusive practices of unregulated loan apps, with the FCCPC previously hinting at comprehensive reforms as far back as 2023.
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