The Federal Competition and Consumer Protection Commission (FCCPC) recently introduced new rules on loan app registration and enforced a ₦100 million fine for any company that refuses to comply. Since these rules took effect, the number of legal digital lending companies in Nigeria has climbed to 492, showing a steady shift toward proper regulation in the sector.
The regulation, which began on July 21, 2025, under the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, gives every digital lender a 90-day window to register with the Commission once they begin operations. Companies that ignore this rule face fines reaching ₦100 million or 19% of their total turnover. The FCCPC also made it clear that directors of any defaulting company could lose the right to hold company positions for up to five years.
The rising number of registered lenders shows how operators are adjusting to stricter oversight. Reports gathered by TechMarge from the FCCPC reveal that the number of registered companies jumped from 425 in May to 492, meaning 67 new lenders signed up within just four months to avoid penalties. Out of the total, 434 have full approval, while 36 are conditionally approved pending completion of necessary requirements. Another 22 companies, already licensed by the Central Bank of Nigeria (CBN), do not need to register with the FCCPC, though the Commission continues to monitor their operations to ensure consumer protection.
FCCPC’s Executive Vice Chairman, Tunji Bello, explained that regulating digital lending became urgent after numerous reports of unethical behavior in the sector. He said borrowers constantly complained about harassment, data misuse, and unfair treatment by unregulated lenders. Bello noted that the new rules aim to strike a balance between innovation and consumer protection, stopping abuse without killing the fast-growing digital finance ecosystem.
In the past, the FCCPC had taken action against illegal loan apps accused of harassing borrowers, sending defamatory messages to their contacts, and leaking private data. Those incidents drew heavy criticism from the public and increased calls for stronger oversight.
The new Digital Lending Regulations of 2025 now set the official framework for how every digital or non-traditional lending company in Nigeria must operate. The rules apply to all unsecured consumer loans carried out on mobile apps, online platforms, or other digital systems. They outline clear standards on registration, transparency, data security, loan recovery, and ethical advertising.
Under the new system, every lender must register and gain approval before offering services. Loan apps are not allowed to access customers’ contact lists, photos, or personal transactions. They must also display all loan terms, including interest rates, repayment schedules, and additional fees. The FCCPC bans any form of harassment, threats, or defamation during debt recovery. Airtime or data-based lending services must involve at least one local partner, and joint ventures between lenders must register together. Monopoly-driven arrangements cannot operate without the Commission’s approval.
These rules bring long-needed order to a once-chaotic lending space that operated without proper accountability. Industry experts believe that the framework will protect consumers, strengthen investor confidence, and create healthier competition among lenders.
Gbemi Adelekan, President of the Money Lenders Association, praised the FCCPC for taking the bold step. He said the regulations will help clean up the sector, promote fair recovery methods through credit bureaus, and end the culture of harassment and public shaming. Adelekan added that the clearer loan terms and strict registration process will help borrowers fully understand what they’re signing up for and build trust between lenders and consumers.
The new regulatory shift shows that Nigeria’s digital lending sector is maturing. With more companies registering and complying, the industry is moving toward a safer, more transparent, and consumer-focused era — one that protects borrowers while still encouraging innovation and financial inclusion.
