The announcement, issued by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, underscores the government’s growing resolve to curb widespread abuses that have marked the rapid expansion of mobile-based lending services. These practices—ranging from predatory interest rates to invasive recovery tactics—have drawn both domestic and international concern over the past several years.
The compliance requirement stems from the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, which took effect on July 21, 2025, under the Federal Competition and Consumer Protection Act of 2018. The regulations were designed to promote fairness, ensure transparency, and hold operators accountable across Nigeria’s increasingly complex lending ecosystem.
To help industry players meet the new requirements, the FCCPC has also released a companion document: the Guidelines on the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025. Developed under Sections 17 and 163 of the FCCPA, the Guidelines offer practical instructions, clarify compliance documentation, and introduce revised Forms 1 and 3—updates that reflect feedback gathered from lenders, consumer groups, and other stakeholders.
Operators with pending applications will not need to wait for fresh demands from the regulator; they may proactively submit any additional information required under the latest Guidelines. According to the Commission, application reviews will continue without delay, and transparency will remain a core operational principle.
FCCPC’s Executive Vice Chairman, Tunji Bello, emphasized the importance of meeting the January deadline. Full compliance, he noted, is both a legal obligation and a critical step toward safeguarding consumers while allowing the digital lending sector to grow responsibly. “Operators have had ample time to adjust to the Regulations and the additional guidance now provided,” he said, stressing that the Commission expects full adherence before enforcement begins.
From January 5 onward, lenders, intermediaries, and service partners that fail to comply will face a range of sanctions. These include operational limitations, suspension from the market, and potential prosecution under the FCCPA. The Commission has made the required forms, guidelines, and FAQs available through its website and nationwide offices to support a smooth transition.
The push for stronger oversight follows years of explosive growth in Nigeria’s online lending market, fuelled largely by a vast unbanked population and the appeal of quick loans available through mobile apps. But alongside the convenience came aggressive tactics. A number of unlicensed operators—popularly called “loan sharks”—have been accused of charging oppressive interest rates, violating data privacy, and engaging in intimidation, including publicly shaming borrowers and contacting their acquaintances.
These concerns prompted a sweeping crackdown in 2022, led jointly by the FCCPC, the Central Bank of Nigeria, the National Information Technology Development Agency, and the Independent Corrupt Practices Commission. The coalition established an interim registration regime and compelled legitimate lenders to undergo documentation and background checks. Still, some platforms continued to operate outside regulatory control, necessitating the strengthened 2025 regulatory framework.
As at November 2025, the FCCPC had granted full approval to 438 digital lending companies, a significant milestone that reflects both the industry’s rapid expansion and the Commission’s efforts to sanitize the marketplace.
With the 2026 compliance deadline now fixed, Nigeria appears poised for a new phase in the evolution of digital credit—one that regulators hope will balance innovation with consumer protection and long-term sustainability.