Client’s Protection: FCCPC Slams N100m fine on exploitative digital lenders

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• Unveils rules for digital lenders to curb harassment

BY BONNY AMADI

Cases of naming, shaming, bullying and data breaches of borrowers from fintech companies in Nigeria, will soon be a thing of the past as the Federal Competitive and Consumer Protection Commission (FCCPC) has unveiled its new laws to protect clients of digital lender firms.

To this effect, the Federal Competition and Consumer Protection Commission (FCCPC) has introduced new regulations to address harassment, data breaches, and exploitative practices in Nigeria’s digital lending space.

The FCCPC, on Wednesday disclosed in a statement that the digital, electronic, online, or nontraditional consumer lending regulations, 2025 — also known as the DEON consumer lending regulation, were officially gazetted and took effect on July 21.

The commission said the rules, issued under the Federal Competition and Consumer Protection Act (2018), will serve as a comprehensive framework for registration, transparency, and ethical loan recovery.

The agency said the document is also the framework for data privacy and responsible lending across all unsecured consumer credit offered through electronic and non-traditional channels.

Tunji Bello, executive vice-chairman and chief executive officer (CEO) of the FCCPC, said the new regime will end abusive practices in the sector.

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said in Abuja on Wednesday.

“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.

“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”

According to the statement, the FCCPC said the regulation prohibits pre-authorised or automatic lending, compels lenders to provide clear and accessible loan terms, and bans unethical marketing.

“It also makes joint registration mandatory for partnerships, requires at least one locally owned service provider in airtime and data lending, and bars monopoly or dominance agreements without prior FC- CPC approval,” the commission added.