FCCPC slams N100m sanction on loan apps over unethical practices
The Federal Competition and Consumer Protection Commission (FCCPC) has placed a N100m sanction on loan apps to curb unethical practices by digital lenders in Nigeria.
Tunji Bello, Commission’s Executive Vice Chairman and CEO, made the disclosure in Abuja on Wednesday, and was signed by Ondaje Ijagwu, FCCPC’s Director of Corporate Affairs.
According to the statement, Nigerians have suffered harassment far too long at the hands of digital lenders and it is time to put an end to it.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders.
“These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers or the rule of law,” the CEO noted.
Speaking further, the CEO emphasised the need to hold violators accountable and promote responsible digital finance.
“The regulations provide the legal tools to hold violators accountable and promote responsible digital finance.
“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” he added.
The statement noted that the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, took effect on 21st July.
The said rules introduced a comprehensive structure to safeguard consumers in Nigeria’s fast-growing digital credit market.
The provisions mandated all digital lenders to register with the FCCPC within 90 days of commencement, with approvals contingent on meeting requirements for transparency, data compliance, and consumer protection.
According to the regulation, non-compliant operators face penalties of up to N100 million or 1% of turnover, as well as possible disqualification of directors for up to five years.
Speaking further, the commission urged all Mobile Money Operators (MMOs), Digital Money Lenders (DMLs) and service partners to obtain application forms, guidelines and compliance requirements.
Bello also encouraged money lenders to report unlawful or unregistered lenders, unfair interest rates, or privacy violations to the right authorities.
