Regulatory Update: The Federal Competition and Consumer Protection Commission (FCCPC) Issues the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025

Regulatory Update: The Federal Competition and Consumer Protection Commission (FCCPC) Issues the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025

Background

In response to the rapid expansion of digital consumer credit services in Nigeria – often accompanied by rising consumer complaints relating to predatory lending, data privacy breaches, unethical debt recovery methods, and anti-competitive practices – the Federal Competition and Consumer Protection Commission (the “Commission”) has issued the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (the “Regulations”), which came into effect on 24th July 2025. This new regulatory instrument builds on the 2022 Limited Interim Regulatory/Registration Framework and Guidelines and represents the first comprehensive regulatory framework tailored to the fast-evolving digital consumer lending ecosystem.

The Commission, established under the Federal Competition and Consumer Protection Act, 2018 (the “FCCPA” or the “Act”), is statutorily empowered to promote competition, prevent market distortions, and protect consumers. The Regulations directly impose mandatory registration, disclosure, and ongoing compliance obligations on all players – regardless of structure, location, or delivery channel – and set out robust consumer protection and competition safeguards. The new rules reflect the Commission’s resolve to ensure transparency, fairness, and inclusivity in Nigeria’s digital credit market while asserting regulatory oversight over a previously under-regulated but high-impact economic activity.

Applicability and Scope of the Regulations

The applicability of the Regulations is intentionally broad and dual in focus, covering both the nature of the transactions and the categories of participants involved in the lending activities the Regulations are designed to govern.

For the first part, the Regulations cover all forms of unsecured consumer lending activities carried out through digital, electronic, online, or non-traditional channels. This includes not only cash loans, but also credit extended in the form of airtime, mobile data, cashback, services, or barter, so long as such transactions involve a specific or verifiable monetary value. The Regulations apply regardless of how interest or charges are structured, ensuring that all relevant lending activities fall within the Commission’s regulatory oversight.

With respect to participants, the Regulations apply to all entities or individuals engaged in providing credit or monetary value, whether in cash, services, or other forms, with an expectation of repayment or return, whether monetary or otherwise, and whether or not such return includes interest. This includes not only primary or secondary lenders, but also any vendors, service providers, partners, or collaborators who are involved in the lending transaction and derive any benefit or share in the revenue generated from it. Moreso, the Regulations expressly provide that its applicability shall extend to persons or undertakings operating in a regulated industry as contemplated in Sections 104 and 105 of the FCCPA.

With a broad and far-reaching scope of application, the Regulations also extend to all persons or entities engaged in commercial activity in Nigeria, whether physically or digitally, and it applies to operations that go beyond state boundaries or are conducted through platforms or technologies intended to reach across states. It also covers businesses operating in regulated industries, ensuring that existing oversight under enabling laws remains unaffected. Specifically, Reg. 4 of the Regulations provides that the scope shall:

• Extend to all persons, entities, or undertakings conducting business in Nigeria (whether physically, electronically, or otherwise) to the extent that they engage in or participate in any commercial activity within Nigeria;
• Apply in circumstances where operational or licensing jurisdiction is territorially limited (e.g., to a particular state), such that where the business or operation, whether by design, execution, or effect, extends beyond state boundaries, the Regulations shall apply to the extent of such inter-state activities.
• Cover any aspect of a business or operation that is hosted, conducted, or transmitted via platforms, infrastructure, or technology that is, by its nature or intent, designed to operate or reach beyond a single State of the Federation.
• Apply to any person providing consumer lending services contemplated under the Regulations, even if such services fall within a regulated industry, in which case regulatory oversight under the enabling laws of that industry shall continue to apply concurrently, without prejudice to the provisions of these Regulations.

Notwithstanding the compliance requirements stipulated in the Regulations, its expressly clarifies that any licence, approval, permission, or clearance issued by the Commission under the Regulations does not substitute for, equate to, or discharge any requirement for licensing, approval, or permission by another regulator in a regulated industry, where applicable, for the business activities of the lender or service provider with respect to consumer lending activities covered by the Regulations.

Approval of the Commission for the Provision of Consumer Lending Services Under the Regulations

The overarching intent of the Regulations is that persons or undertakings participating in the provision of consumer lending services, whether or not as partners or in pursuance of a joint vendor or strategic alliance arrangement, apply to and receive the approval of the Commission for the provision of said services.

Specifically, Regulation 7 of the Regulations provides that every undertaking involved in the provision of consumer lending services or offering any services within the estimation of the Regulations – whether as a lender or service provider – prior to the commencement of the Regulations must obtain the Commission’s approval within ninety (90) days in order to continue offering such services. Furthermore, Reg. 10 of the Regulations provide that no undertaking may partner with another for the purpose of providing consumer lending services unless such a partnership is based on a formal contract submitted to, and expressly approved by, the Commission. Essentially, participants in the consumer lending space must obtain the approval of the Commission. Moreso, where the services are to be rendered as part of, or in pursuance of, a partnership, joint venture, fee sharing arrangement or otherwise, the respective undertakings must have concluded and entered into a formal contract and approved by the Commission.

It is important to note that the Commission’s approval, as contemplated under the Regulations, does not confer blanket legality on participating undertakings where the nature of the business requires sector-specific regulatory approval. Regulation 11 of the Regulations provides that any undertaking involved in, or intending to participate in, the provision of consumer lending services – including through agreements, contracts, joint ventures, or similar arrangements for the provision of lending, vendor, or ancillary services (including related, associated, or subsidiary services) – shall be prohibited from doing so if the activity is subject to the oversight of another regulator, unless the undertaking possesses a valid, subsisting, and unrestricted licence or permit from the relevant sector regulator.

In addition, it is worth noting that the Regulations mandate that undertakings operating within a regulated industry that seek to partner with non-regulated entities must enter into a mutual consumer lending or service-level agreement. This agreement is required to form part of their application to the Commission for approval of the proposed business venture. Reg. 13 of the Regulations spells out some information and provisions that must be catered for. This includes the names, office address and obligations of the contracting parties, nature of the consumer lending services, interest rates, risk allocation, default recovery and enforcement methods and modalities, data protection compliance, applicable fees and charges, and dispute resolution.

Registration Requirements

Undertakings desirous of obtaining the approval of the Commission for the provision of consumer lending services is required to furnish the Commission with the documents and information itemed in Reg. 12(1) of the Regulations. Such information and documents include the consumer lending services agreement, an application to the Commission in company of completed forms as contained in the schedule of the Regulations, copy of its operating licence as issued by the requisite sector regulator, certificate of incorporation and constitution documents of the applying undertakings, details and profiles of their respective members of the board of directors, list of shareholders (and ultimate beneficiaries), standard terms and conditions for the provision of the services, evidence of proposed lender’s financial capacity to finance the consumer lending services (which may include its audited financial statements and evidence of lending arrangement with third-party financier), evidence of payment of prescribed fees, among others.

Approval Lifespan and Renewal

An approval issued by the Commission pursuant to these Regulations shall expire on 31^st December of the third calendar year following its issuance and must be renewed no later than 31^st March of the following year. Thereafter, the approval shall be renewable every thirty-six (36) calendar months from the date of the first renewal, subject to payment of the prescribed annual levy, compliance with any directives issued by the Commission, and the undertaking’s satisfactory performance and adherence to the provisions of the Regulations and other applicable laws.

Consumer Protection and Competition Oversight

In line with its primary mandate, consumer protection takes centre stage in the Regulations. As expected, the Regulations outline exhaustive consumer protection pillars which revolve around disclosure and transparency, fair treatment of consumers and responsible business conduct. For instance, lenders and service providers are required to:

• Fully disclose all terms of the lending service to consumers, including (but not limited to) interest rates, repayment terms, and associated charges. Variations of these terms shall not be varied unless expressly provided for in the consumer lending contract or agreement.
• Ensure that advertisements are factual, unambiguous, and presented in clear, simple language, without any offensive, misleading, or deceptive content.
• Treat consumers equitably and fairly at all stages of engagement.
• Avoid including unfair terms in consumer lending agreements that may create an imbalance of rights or impose indirect or direct harm on consumers.
• Conduct their business in a responsible, professional, and ethical manner.
• Promptly notify consumers of any changes in circumstances that may affect the terms of service.
• Ensure that all credit advances are provided strictly on an opt-in basis.

In a similar vein, the Regulations underscore the Commission’s commitment to promoting and preserving local content and competitive market conditions by embedding key competition safeguards aimed at preventing anti-competitive conduct, market manipulation, and unfair dominance in the consumer lending space. The Regulations require that the regulated undertakings comply with the provisions of the FCCPA, the Restrictive Agreement and Trade Practices Regulations, and the Abuse of Dominance Regulations 2022. Furthermore, the Regulations provide that:

• All regulated undertakings involved specifically in lending airtime and data shall ensure that, no later than sixty (60) days from the commencement of the Regulations, it has at least two (2) intermediaries and/or service providers for service activation, one of whom shall be a service provider solely-owned by Nigerians.
• The regulated undertakings shall not engage in exclusionary or anticompetitive practices and exclusivity arrangements, subject to the provisions of the FCCPA.
• The regulated undertakings shall not enter into consumer lending agreements with a service provider or any other intermediary which holds a dominant position in their respective markets without the approval of the Commission.

These provisions reflect the Commission’s broader objective of fostering a level playing field, encouraging indigenous participation, and preventing the entrenchment of monopolistic structures in the fast-growing digital lending ecosystem. By mandating the inclusion of Nigerian-owned service providers and prohibiting exclusivity arrangements and dominance-driven collaborations without regulatory approval, the Regulations aim to stimulate innovation, promote diversity of service offerings, and safeguard the interests of both consumers and smaller market participants. This competitive discipline reinforces the Commission’s dual mandate of consumer protection and market regulation in a rapidly evolving digital economy.

Reporting Obligations

To ensure transparency and accountability, lenders and service providers must keep accurate records of all lending activities, consumer interactions, and complaints. They are also required to submit biannual reports to the Commission detailing transaction volumes, interest and fees collected, and complaint resolutions. Relevant documents must be provided upon request by the Commission or other relevant regulator, and service data shared with recognised credit bureaus. Finally, they must promptly report regulatory breaches, legal disputes, or significant operational issues to the Commission or sector regulator, where required.

Additionally, regulated undertakings and lenders/service providers must file annual returns by 31st March each year (or as otherwise directed), including details of transaction volumes, values, complaints, and financial statements. Records must be retained for 5 (five) years and made available to the Commission within 48 hours of a request.

Conclusion

The issuance of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 marks a significant regulatory milestone in Nigeria’s consumer credit landscape, particularly from a consumer protection and competition perspective. By creating a unified framework for the supervision of digital and non-traditional lending models, the Commission has not only strengthened consumer protection safeguards but also clarified the compliance obligations for all stakeholders engaged in these evolving credit services. As the market continues to grow in complexity and scale, affected entities – whether directly involved in lending or providing ancillary services – must take urgent steps to understand and comply with the provisions of the Regulations. Ultimately, the framework represents a critical step towards building a safer, fairer, and more transparent digital lending ecosystem in Nigeria.

For further enquiries or guidance on how the Regulations may impact your business, please contact our Managing Partner, Adeleke Alex-Adedipe, at a.alex-adedipe@doa-law.com.