By Dickson Pat
No fewer than 521 digital lending companies have fallen under the regulatory oversight of the Federal Competition and Consumer Protection Commission ,FCCPC, as the agency intensifies efforts to sanitise Nigeria’s fast-growing digital credit market.
This follows the expiration of the January 5, 2026, deadline for compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
The FCCPC regulations require all digital lenders operating in Nigeria, whether app-based, online, or through other non-traditional channels, to register with the Commission and comply fully with its consumer protection rules.
According to data, 457 of the 521 registered digital lenders have received full approval to operate, while 35 have been granted conditional approval.
An additional 29 lenders licensed by the Central Bank of Nigeria ,CBN, are also subject to FCCPC oversight under the new framework.
However, the commission disclosed that 103 loan apps operated by unregistered companies have been placed on a regulatory watchlist and may face enforcement actions.
The FCCPC has consistently warned that lenders operating outside its approval framework risk sanctions, including delisting from digital platforms, hefty fines, and possible prosecution.
While the growing number of registered lenders reflects the scale and demand within Nigeria’s consumer credit market, industry players say it also raises concerns about regulatory capacity.
Analysts noted that supervising more than 500 registered lenders, alongside hundreds of illegal operators, could stretch the commission’s resources too thin.
The president of the Money Lenders Association ,MLA, Gbemi Adelekan, also acknowledged that enforcement could be overwhelming given the sheer number of players
He pointed out that the regulations now bring IT platforms that support digital lenders under FCCPC oversight, widening the scope of supervision, but described the Commission as increasingly responsive to industry concerns.
The 2025 regulations establish a comprehensive legal framework to register, monitor, and sanction all forms of digital and non-traditional consumer lending. They apply to unsecured loans offered through electronic, online, mobile, or similar channels. Key provisions include mandatory registration, clear loan disclosures, data privacy protections, ethical recovery practices, fair interest rates, and bans on pre-authorised or automatic lending.
The rules also prohibit unethical marketing practices and restrict apps from accessing borrowers’ contacts, photos, or transaction data. In addition, the regulations mandate joint registration for lender partnerships and prohibit monopolistic arrangements without prior FCCPC approval.
They also require at least one locally owned service provider for airtime and data lending services.
The FCCPC said enforcement would begin immediately after the January 5 deadline.
Non-compliant lenders now risk fines of up to N100 million or 19% of turnover, alongside possible director disqualification for up to five years.
Adelekan noted that borrower complaints have reduced since the introduction of the new rules, suggesting that some sanity is returning to the sector. However, he warned that abuse still occurs, citing cases of borrowers taking loans from dozens of platforms without repayment.
The new framework builds on the 2022 interim guidelines, which struggled to curb harassment and defamation of borrowers.
With stronger sanctions and wider coverage, regulators hope the latest rules will finally bring lasting order to Nigeria’s digital lending space.
Millions of micro, small, and medium enterprises still operated outside the formal system, despite being the heartbeat of Nigeria’s economy.
With SMEs accounting for nearly 96% of registered firms, the free business registration initiative is being hailed a game-changer with major economic implications.
Hailed as more than a bureaucratic gesture, the FG’s policy has signalled a deliberate shift towards economic inclusion, data-driven planning, and long-term growth.
