By Yinka Kolawole
The Federal Competitors and Shopper Safety Fee (FCCPC) has issued laws to curb abuses associated to digital, digital, on-line, or non-traditional client lending.
In a launch signed yesterday by Director, Company Affairs, FCCPC, Ondaje Ijagwu, the fee acknowledged that the landmark laws often called the Digital, Digital, On-line, or Non-Conventional Shopper Lending Rules (DEON Shopper Lending Regulation) 2025,is to handle longstanding client complaints and a wide range of points.
“These embrace exploitative practices, information privateness violations, abusive mortgage restoration ways, harassment, and anti-competitive behaviour by sure digital lenders and their companions inside Nigeria’s quickly rising digital credit score market.
“These landmark laws, made pursuant to Sections 17, 18, and 163 of the Federal Competitors and Shopper Safety Act (2018), primarily safeguards customers by establishing a complete framework.
“This framework mandates transparency, equity, accountable conduct, information privateness, and accessible redress mechanisms, all underneath the oversight of the FCCPC. It’s a essential step towards regulating Nigeria’s quickly increasing digital lending sector.
In response to Ijagwu, whereas asserting the gazetting and graduation of the Rules in his workplace in Abuja on Wednesday, Government Vice Chairman/Chief Government Officer, FCCPC, Mr. Tunji Bello, mentioned: “For too lengthy, Nigerians have endured harassment, information breaches, and unethical practices by unregulated digital lenders. These laws draw a transparent line that innovation is welcome, however not on the expense of rights and dignity of customers, or the rule of legislation.”
“These laws present the authorized instruments to carry violators accountable and promote accountable digital finance. No client needs to be harassed, defamed, or lured into unsustainable debt underneath the guise of digital lending.”
The laws, which got here into impact on July 21, 2025, establishes a strong authorized framework to register, monitor, and sanction all types of digital and non-traditional lending in Nigeria.
“Relevant to all unsecured client lending carried out via digital, on-line, cellular, or different non-traditional means, the laws set out clear necessities for registration, transparency, information privateness, moral restoration, honest rates of interest, and accountable lending.
“Critically, the laws prohibit pre-authorised or computerized lending, compel clear and accessible mortgage phrases, ban unethical advertising, and mandate native possession of at the least one service supplier for airtime and information lending companies.
“Additionally they require joint registration of all lender partnerships and prohibits monopolistic or dominance-based agreements with out prior fee’s approval.
“Underneath its provisions, all digital lenders should register with the FCCPC inside 90 days of graduation. Approval relies on assembly client safety, information compliance, and transparency requirements. Non-compliant operators face sanctions, which can embrace fines of as much as N100 million or 1% of turnover, in addition to potential disqualification of administrators for as much as 5 years,” the assertion added.
The submit FCCPC issues regulations to tackle digital lending abuses appeared first on Vanguard News.
