The new FCCPC regulation regarding digital consumer lending will come into effect on July 25, 2025, aimed at improving conditions for borrowers and increasing transparency in the sector.
Overview of the New Regulations
The regulation covers all digital, online, and non-traditional consumer loans, including unsecured cash loans and innovative financial products. The commission will oversee 399 fully approved lenders by July 2025, marking a 235% increase since April 2023.
Registration and Compliance Requirements
All lenders are required to register with the FCCPC and submit a compliance report and financial statements. Microfinance banks are exempt from registration, while others must comply within 90 days of the regulations taking effect.
Impact and Prospects for Borrowers
The new rules may lead to higher loan costs in a competitive and constrained market, but they aim to protect borrowers from predatory practices and enhance transparency in lending.
FCCPC’s new digital lending regulations pave the way for a more responsible and secure debt market in Nigeria, though borrowers should closely monitor the changes.
