In furtherance of its regulatory initiatives aimed at ensuring transparency in the nation’s digital payment system, the Federal Competition and Consumer Protection Commission (FCCPC) is revving up its enforcement against Digital Money Lending (DML) operators that failed to comply with the system’s regulations.
The move marks a critical phase in the commission’s efforts to sanitise the system, which over the past few years, had been characterized by abuses and unethical practices by the loan apps operators due to some regulatory loopholes.
While the digital payment system platforms had helped in promoting financial inclusion nationwide, their operations have generated widespread complaints by customers, including harassment, excessive interest rates, unauthorized access to customers’ accounts and fraudulent use of their personal data for transactions, and exploitative loan terms and unethical recovery practices
Following the mounting consumer complaints about the loan apps operaators, the FCCPC introduced the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations) for the purposes of sanitizing the digital payment space by restoring order and accountability to the system.
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Specifically, the DEON regulations mandated all digital lenders to register with the commission and strictly adhere to consumer protection standards.
Some of the key provisions of the regulatory order include mandatory registration and approval of all digital lenders, full disclosure of loan terms, fees, and interest rates, prohibition of abusive debt-collection and marketing practices, and data protection and privacy requirements.
The sanctions for violating these provisions include heavy fines, suspension, and director liability and the FCCPC fixed Monday, 5 January 2026, as the final deadline for the operators to comply with the DEON Regulations.
With the lapsing of the compliance timeline about two weeks ago, the commission has commenced a phased implementation of enforcement measures.
A statement issued on Wednesday by the Commission’s spokesperson, Ondaje Ijagwu, indicated that the FCCPC had commenced the enforcement actions targeted at DML operators that failed to regularise their status within the stipulated timeframe.
Commenting on the latest move by the commission, the Executive Vice Chairman and Chief Executive Officer (EVC/CEO), Mr. Tunji Bello, said the measures were aimed at fully implementing the DEON regulations to ensure transparency and not to stifle innovation or disrupt legitimate businesses, but to restore trust in the digital lending market.
The EVC/CEO explained: “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 added.
According to him, as part of the approved enforcement framework, the FCCPC has withdrawn the conditional approval status previously granted to certain digital lenders that failed to complete their regularisation process during the transitional period.
In view of the foregoing, such operators had been removed from the FCCPC’s published register of approved digital lenders, pending full compliance with applicable regulatory requirements.
On the importance of the register to the regulatory step, Bello said: “The FCCPC’s register is intended to guide the public on operators that have met the applicable regulatory requirements as at 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.”
In addition to de-listing of defaulting operators, the commission has commenced structured engagement with application hosting platforms and payment service providers as part of broader enforcement and compliance monitoring efforts to ensure that non-compliant digital lenders do not continue operating through app stores, payment gateways, or other digital infrastructure.
The FCCPC confirmed that additional regulatory steps would be taken in line with the law and established procedures as enforcement progresses.
For operators that were provisionally designated as eligible under transitional arrangements, the FCCPC has provided a final deadline of April 2026 to fully regularise their registration under the DEON Regulations.
The EVC/CEO further clarified: “This window is provided to enable affected operators to take steps towards compliance. Operators that choose not to regularize their status within this period may be subject to further regulatory measures, as provided under the law.
“Effective regulation depends on consistent application. Compliant businesses deserve a predictable regulatory environment, and consumers are entitled to protection under the law”, Bello added.
