Nigeria has taken decisive action to protect consumers from exploitative digital lenders, with the release of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025.
The landmark Federal Competition and Consumer Protection Commission (FCCPC) rules aim to curb exploitative practices, data breaches, and harassment by unregulated digital lenders.
Announcing the regulations at the FCCPC headquarters in Abuja, Executive Vice Chairman and CEO Tunji Bello said, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders for too long. “These regulations draw a clear line that innovation is welcome, but not at the expense of consumers’ rights, dignity, or the rule of law,” he said.
The DEON Regulations create a comprehensive framework for all unsecured digital lending across electronic, online, mobile, or other non-traditional platforms. The rules mandate transparent loan terms, ethical recovery practices, responsible lending, fair interest rates, and robust data privacy protections. “No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” Bello added.
Under the new regulations, all digital lenders, including Mobile Money Operators (MMOs) and Digital Money Lenders (DMLs), must register with the FCCPC within 90 days. The government has warned that lenders are required to meet strict consumer protection and transparency standards. “Non-compliance carries severe consequences, including fines of up to $$65 500 (₦100 million) or 1% of turnover, and potential disqualification of directors for up to five years.
Key provisions also ban pre-authorised lending, unethical marketing, and monopolistic practices, while requiring at least one locally owned service provider for airtime and data lending. Joint registration of lender partnerships is now mandatory, and the Commission retains oversight to monitor adherence.
Bello emphasised that the broader vision of these regulations is to provide the legal tools to hold violators accountable and promote responsible digital finance. “Our goal is to foster a market where innovation thrives, but consumers are protected.”
The FCCPC urged all lenders to immediately comply and advised consumers to report unlawful and unregistered operators.
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