Borrowers Get More Protection As FG Announces New Rules for Loan Apps, Telcos, Retailers

The Federal Competition Consumer Protection Commission (FCCPC) has introduced new guidelines to protect borrowers accessing digital loans in Nigeria. The Digital Electronic Online Consumer Lending Regulations 2025 aim to address concerns like predatory lending and data privacy breaches in the digital credit market.

The regulations mandate mandatory registration, transparency, and ethical practices for lending service providers, including loan apps, fintechs, mobile operators, agricultural platforms, and retailers offering installment plans. Telecommunication companies providing airtime, data advances, and cashback services are also covered.

Violators of the new regulations face tough penalties, with fines of up to N50 million for individuals and N100 million or 1% of annual turnover for companies. The FCCPC can also revoke licenses, suspend operations, or delist institutions for severe violations.

Additionally, lenders must conduct proper credit assessments to ensure responsible borrowing. The FCCPC has already approved 100 new loan applications in the past year, with 322 fully approved loan apps and 47 removed from.