FG New Digital Lending Rules Shake Up Nigeria’s Loan App Industry

The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has introduced new regulations to monitor the interest rates charged by digital loan apps in the country. The Digital Electronic Online Consumer Lending Regulations 2025 aim to prevent exploitative practices and ensure consumer interests are protected.

While digital lenders argue that their interest rates reflect the cost of funds and risks associated with lending, critics have long complained about the high rates. The regulations will impose stricter penalties on misconduct, with individuals facing fines of up to N50 million and companies up to N100 million or 1% of their last year's turnover.

Despite concerns about disrupting the digital lending ecosystem, industry players have welcomed the move as a positive step towards formalizing the sector and protecting consumers. The regulations also signal a more formal approach to digital lending in Nigeria, with all digital lenders required to register with the FCCPC by May 2025.