At least 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 Nigeria’s new digital lending rules.
The deadline marked the end of the grace period for full compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, which require all digital lenders—whether app-based, online, or operating through other non-traditional channels—to register with the FCCPC and adhere to stricter consumer protection standards.
FCCPC records indicate that of the 521 registered digital lenders,
- 457 have received full approval,
- 35 are operating under conditional approval, and
- 29 are licensed by the Central Bank of Nigeria (CBN) but remain subject to FCCPC oversight.
Despite the surge in registrations, the Commission disclosed that 103 loan apps run by unregistered companies have been placed on its watchlist for enforcement action.
The FCCPC has repeatedly warned that lenders operating outside its approval framework risk sanctions, including delisting from app stores, heavy fines, and possible prosecution.
Industry experts say the rapid rise in registered lenders highlights the size of Nigeria’s consumer credit market but raises concerns about effective supervision.
Adewale Adeoye, a Lagos-based financial analyst, noted that while the FCCPC has made progress in sanitising the sector, enforcement could become increasingly difficult.
“Monitoring over 500 registered digital lenders alone requires significant capacity, especially when the FCCPC’s mandate spans multiple sectors. Add the hundreds of illegal operators, and enforcement becomes a major challenge,” he said.
He added that the new rules also extend FCCPC oversight beyond loan apps to non-app-based lenders, further stretching regulatory capacity.
Similarly, Gbemi Adelekan, President of the Money Lenders Association (MLA), acknowledged that enforcement may be overwhelming, but stated that the FCCPC has so far been responsive.
“The new regulations also cover IT platforms supporting digital lenders, which complicates oversight. The Commission says it is prepared, but how it handles rising complaints over time remains to be seen,” Adelekan said.
The 2025 Regulations, which took effect on July 21, 2025, establish a comprehensive framework for regulating all forms of digital and non-traditional consumer lending in Nigeria.
Key provisions include:
- Mandatory registration of all digital lenders and partnerships
- Clear disclosure of loan terms and interest rates
- Strict data privacy rules, including banning access to customers’ contacts, photos, and personal transactions
- Prohibition of pre-authorised or automatic loans
- Ban on unethical recovery practices and misleading marketing
- Requirement for local ownership in airtime and data lending services
- Restrictions on monopolistic agreements without FCCPC approval
Non-compliant lenders face penalties of up to ₦100 million or 19% of turnover, as well as possible director disqualification for up to five years.
