Customer harassment: FCCPC becomes difficult to fight loan applications, slamming N100M fines on violators

Federal competition and the Consumer Protection Commission (FCCPC) have launched strict regulations to curb harassment, data violations, and other unethical practices by digital lenders in Nigeria.

This was revealed in a statement signed by the Director of Corporate Affairs FCCPC, Ondaje Ijagwu.

Quoting the Deputy Chair of the Executive Commission/Chief Executive Officer, Tunji Bello, this occurs at the opening of digital, electronic consumer, online, or non-traditional loan regulations (Deon Consumer Loan Regulation), 2025 Framework in Abuja on Wednesday, September 3, 2025.

“It’s been too long, Nigeria has experienced harassment, data violations, and unethical practices by unregulated digital lenders.

“This regulation draws a clear line that innovation is accepted, but not by sacrificing the rights and dignity of consumers or the rule of law,” said CEO.

Bello added, “The regulation provides legal tools to request a responsibility of violators and promote responsible digital finances. No consumers must be harassed, slandered, or bormed into non -sustainable debts with digital loan guise.”

The statement noted that digital, electronic, online, or non-traditional consumer loan regulations (Deon Consumer Loan Regulations), 2025, came into force on July 21.

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Made based on sections 17, 18 and 163 of the Federal Competition and Consumer Protection Act (2018), the rule introduces a comprehensive framework to protect consumers in the fast growing Nigerian digital credit market.

“Under the provisions, all digital lenders must register with FCCPC within 90 days after the start, with approval to submit to transparency meeting standards, data compliance, and consumer protection.

“Operators who are not obedient to face sentences up to ₦ 100 million or 1% of turnover, as well as the possibility of disqualification of the Director for up to five years.

“The rule prohibits pre-authorization or automatic loans, prohibits unethical marketing, forcing access requirements that can be accessed, and require local ownership from at least one service provider for airtime loan and data services.

They also mandated joint registration of lending partnerships and limiting monopolistic agreements without previous FCCPC approval.

The commission urges all cellular money operators (MMO), digital money lenders (DML) and service partners to get application forms, guidelines and compliance requirements.

Consumers have also been encouraged to report lenders who violate the law or are not registered, unfair interest rates, or privacy violations.

By: Babajide Okeowo