The Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria has commenced the enforcement of new regulations for lending apps. These regulations aim to improve transparency and protect borrower rights.
Goals and Content of the New Rules
The new regulations, effective from July 21, 2025, are designed to address aggressive borrowing practices, data privacy violations, and unethical debt recovery methods. The regulations will govern issues such as: - Exploitative Practices, - Data Privacy Violations, - Aggressive Debt Recovery Tactics, - Harassment, and Anti-Competitive Behavior.
FCCPC's Response to Violations
According to FCCPC Executive Vice Chairman, Tunji Bello, the new regulations are a response to frequent violations by lending apps. "For too long, Nigerians have endured harassment, data breaches, and unethical practices," he stated. The regulations aim to ensure the rights and dignity of borrowers are upheld.
Requirements for New Lending Apps
FCCPC emphasizes that all new digital lenders must register within 90 days of commencing operations. Non-compliant operators may face fines up to ₦100 million or 1% of turnover. As of now, 399 digital lenders have been approved, reflecting a growing market.
The introduction of the new regulations aims to create safe conditions for digital lending in Nigeria while enhancing borrower protection. FCCPC is intensifying oversight in the sector to minimize risks associated with unethical lending practices.
