By Toochi Ejiofor
Edited by Bababunmi Agbebi
Nigerians who rely on digital loans may gain relief after a Federal High Court in Lagos affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to regulate digital lenders.
The ruling upholds the commission’s Digital, Electronic, Online, and Non-Traditional Consumer Lending (DEON) Regulations 2025, allowing the FCCPC to resume enforcement against digital lenders that violate consumer protection rules.
Delivering judgment in Suit No. FHC/L/CS/760/2026, Justice Ambrose Lewis-Allagoa dismissed a legal challenge filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which argued that the FCCPC lacked the authority to regulate digital lending services. The court held that the FCCPC has economy-wide authority to protect consumers and address anti-competitive practices under the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The decision also lifted an earlier ex-parte injunction that had temporarily halted the FCCPC’s enforcement activities, enabling the commission to resume implementation of the DEON Regulations.
The DEON Regulations are intended to promote transparency and encourage responsible lending practices across the digital lending sector. They mandate that digital lenders operate with absolute transparency, fairness, and data privacy. Lenders are required to clearly disclose all interest rates, fees, and repayment schedules upfront, eliminate unfair contract terms, and comply fully with national data privacy laws.
Furthermore, lenders are to establish transparent complaint resolution processes, provide consumers with clear channels for lodging complaints, and resolve complaints within 24 hours where practicable, or within 48 hours where additional time is required.
In addition, only digital lenders registered and licensed by the FCCPC are permitted to provide digital consumer lending services in Nigeria, while the commission is empowered to monitor lending charges to ensure interest rates are not exploitative.
This recent judgment marks a significant step in strengthening oversight of Nigeria’s growing digital lending sector, with the FCCPC now cleared to resume enforcement of the DEON Regulations.
