No fewer than 521 digital lending companies are now under the regulatory oversight of the Federal Competition and Consumer Protection Commission (FCCPC) following the expiration of the January 5, 2026, deadline for compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
The development marks a major step in the Federal Government’s effort to sanitise Nigeria’s rapidly expanding digital credit market amid rising consumer demand for quick loans.
Data released by the commission show that out of the 521 registered digital lenders, 457 have received full approval to operate, while 35 were granted conditional approval. An additional 29 lenders licensed by the Central Bank of Nigeria are also subject to FCCPC oversight under the new regulatory framework.
However, the commission disclosed that 103 loan applications operated by unregistered companies have been placed on a regulatory watchlist and may face enforcement actions, including sanctions and delisting from digital platforms.
The FCCPC reiterated that all digital lenders operating in Nigeria, whether through mobile apps, online platforms or other non-traditional channels, are required to register with the commission and comply fully with consumer protection rules.
It warned that operators outside the approved framework risk penalties ranging from heavy fines to possible prosecution.
While the rising number of registered lenders reflects the growing size of Nigeria’s consumer credit market, industry analysts have raised concerns about the commission’s capacity to effectively supervise over 500 registered lenders alongside numerous illegal operators.
The President of the Money Lenders Association, Gbemi Adelekan, acknowledged that enforcement could be challenging given the volume of players in the sector.
He noted that the new regulations also bring technology platforms supporting digital lenders under FCCPC supervision, significantly expanding the scope of regulation.
Despite the challenges, Adelekan said engagement between regulators and industry stakeholders has improved, adding that borrower complaints have reduced since the introduction of the new rules.
The 2025 regulations establish a comprehensive framework for registering, monitoring and sanctioning digital and non-traditional lenders.
Key provisions include mandatory registration, clear loan disclosures, data privacy protection, ethical recovery practices, fair interest rate guidelines and a ban on automatic or pre-authorised lending.
The rules also prohibit lenders from accessing borrowers’ contacts, photos or personal data, restrict unethical marketing practices and require joint registration for lender partnerships. In addition, monopolistic arrangements are prohibited without prior FCCPC approval.
The commission said enforcement actions commenced immediately after the January 5 deadline, warning that non-compliant lenders now risk fines of up to ₦100 million or 19 per cent of turnover, as well as possible disqualification of company directors for up to five years.
The FCCPC expressed optimism that the strengthened regulations, backed by tougher sanctions, would restore order to Nigeria’s digital lending space and enhance consumer protection nationwide.
