The Federal Competition and Consumer Protection Commission has begun a phased enforcement of sanctions against Digital Money Lending operators that failed to regularise their operations in line with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.

The deadline for compliance by the affected operators elapsed on Monday, January 5, 2026.

In a statement issued on Wednesday, the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, said the enforcement drive is designed to ensure regulatory clarity and rebuild confidence in Nigeria’s rapidly expanding digital lending sector.

The statement read, “The Federal Competition and Consumer Protection Commission has commenced a phased implementation of enforcement measures in respect of Digital Money Lending operators that did not regularise their status in accordance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).”

Commenting on the move, the Executive Vice Chairman and Chief Executive Officer of the Commission, Tunji Bello, said the actions were required to fully implement the new rules and shield consumers from exploitative practices.

“The compliance window provided under the Regulations has now closed. At this stage, the Commission is proceeding with appropriate enforcement steps in a manner that is fair, orderly, and consistent with due process.

The objective is to promote discipline, transparency, and consumer confidence within the digital lending space, not to disrupt legitimate business activity,” Bello said.

Under the approved enforcement framework, the FCCPC has revoked the conditional approvals previously issued to some digital lenders that did not complete the required regularisation during the transitional period.

The Commission also confirmed that defaulting operators have been removed from its published register of approved digital lenders until they achieve full compliance with all applicable regulatory requirements.

Bello explained that the FCCPC register is a key consumer protection mechanism that enables Nigerians to identify lenders that meet regulatory standards.

“The FCCPC’s register is intended to guide the public on operators that have met the applicable regulatory requirements as of the time of publication. Consumers are advised to exercise caution when dealing with digital lenders that do not appear on the Commission’s current list of approved operators,” he said.

In addition, the Commission has started structured engagements with relevant application hosting platforms and payment service providers, in line with its statutory mandate, as part of ongoing enforcement and compliance monitoring efforts.

Further regulatory actions will be taken in accordance with the law and established procedures.

For operators provisionally recognised under transitional arrangements, the Commission has set April 2026 as the deadline to regularise their registration under the DEON Regulations.

“This window is provided to enable affected operators to take steps towards compliance. Operators that choose not to regularise their status within this period may be subject to further regulatory measures, as provided under the law,” Bello stated.

The FCCPC stressed that the ongoing enforcement exercise is aimed at strengthening market discipline, protecting compliant operators from unfair competition, and shielding consumers from abusive, deceptive, or unlawful practices.

“Effective regulation depends on consistent application. Compliant businesses deserve a predictable regulatory environment, and consumers are entitled to protection under the law,” Bello added.

The Commission reaffirmed its commitment to transparent regulation, fair competition, and robust consumer protection across Nigeria’s digital economy.

Nigeria’s digital lending industry has expanded rapidly in recent years, fuelled by increased smartphone usage, wider mobile internet access, and limited access to traditional bank credit.

However, the sector has also been beset by complaints of high interest rates, unclear loan terms, borrower harassment, data privacy breaches, and unauthorised access to contacts on borrowers’ mobile phones.

These issues led the FCCPC to tighten oversight through measures such as the DEON Regulations, which require digital lenders to register, disclose ownership structures, comply with data protection rules, and observe fair lending and debt recovery standards.

In the past, the Commission has ordered the removal of several loan applications from app stores and sanctioned operators involved in illegal debt recovery practices, including public shaming and threats.

With the latest phase of enforcement, the FCCPC reiterated its resolve to uphold transparent regulation, fair competition, and effective consumer protection across Nigeria’s digital economy, warning that defaulting operators will remain under sustained regulatory scrutiny.

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