The Federal Competition and Consumer Protection Commission (FCCPC) has resumed enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations) after a Federal High Court in Lagos dismissed a suit challenging its authority to regulate Nigeria’s digital lending sector.
In a statement issued in Abuja, Ondaje Ijagwu, FCCPC Director of Corporate Affairs, said the commission’s regulatory powers were affirmed following a judgment delivered by Justice A. L. Allagoa in a case filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN).
According to the commission, the court dismissed WASPAN’s originating summons in its entirety and rejected all the reliefs sought by the association.
The court also upheld the legality of the DEON Regulations, ruling that they were issued within the FCCPC’s constitutional and statutory mandate.
In addition, Justice Allagoa vacated the interim ex parte order that had temporarily restrained the commission from implementing and enforcing the regulations.
With the restraining order lifted, the FCCPC said the regulations are once again fully operational.
“The legal impediment that had necessitated the commission’s temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the regulations are once again fully operational and enforceable,” the statement said.
The commission explained that it suspended enforcement of the regulations in April 2026 immediately after being served with the court’s interim order, stressing that the decision reflected its commitment to the rule of law.
Commenting on the judgment, Ijagwu said the FCCPC would continue to discharge its statutory responsibilities in line with the court’s decision.
“The commission has always maintained that the rule of law is fundamental to effective regulation and good governance,” he said.
“When the court issued its interim order, we immediately suspended implementation of the regulations in full compliance with the court’s directive. Now that the court has affirmed the validity of the DEON Regulations, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.”
The DEON Regulations were introduced to strengthen oversight of Nigeria’s fast-growing digital lending industry.
According to the FCCPC, the regulations are intended to:
- Promote responsible lending practices;
- Improve regulatory accountability;
- Eliminate unfair and exploitative lending practices; and
- Strengthen consumer protection in the digital credit market.
The commission said the framework seeks to balance innovation and financial inclusion with effective consumer safeguards.
“Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike,” Ijagwu said.
The court’s decision is expected to bolster the FCCPC’s oversight of digital lending operators and reinforce efforts to curb abusive debt recovery practices while promoting greater transparency and accountability across Nigeria’s digital credit ecosystem.
