Image of the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello,

The Federal Government has rolled out new rules for Digital Money Lenders and Mobile Money Operators (MMOs), popularly known as loan sharks, in a bid to curb harassment, data breaches, and unethical lending practices.

The Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025 were announced on Wednesday by Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission (FCCPC).

According to the Commission, operators that fail to comply risk sanctions, including fines of up to ₦100 million or one per cent of turnover, and possible disqualification of company directors for up to five years. The regulations take effect from July 21, 2025.

Speaking in Abuja, the FCCPC’s Executive Vice Chairman/Chief Executive Officer, Mr Tunji Bello, said the guidelines were designed to protect Nigerians from predatory lending.

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers or the rule of law,” Bello stated.
“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”

Key Provisions of the Regulations

• Prohibit pre-authorised or automatic lending.

• Compel lenders to provide clear and accessible loan terms.

• Ban unethical marketing tactics.

• Require local ownership of at least one service provider for airtime and data lending.

• Mandate joint registration for all lender partnerships.

• Prohibit monopolistic or dominance-based agreements without FCCPC approval.

All digital lenders must register with the FCCPC within 90 days of commencement, with approval dependent on compliance with consumer protection, data security, and transparency standards.

The new rules will affect a wide range of operators, including FairMoney, Carbon, PayLater, Okash, Aella and other platforms offering quick digital loans in Nigeria.

The FCCPC advised all providers to visit www.fccpc.gov.ng for application forms, guidelines, and compliance details.

The move follows earlier hints in 2023 that the Commission was preparing a comprehensive regulatory framework for the digital lending sector.