The Federal Competition and Consumer Protection Commission (FCCPC) is back to enforcing its rules for digital lending in Nigeria. This follows a recent court decision that confirmed the FCCPC's authority to oversee the digital lending industry.
The FCCPC made this known in a statement on Monday. The update comes after Justice A.L. Allagoa of the Federal High Court in Lagos ruled on a case brought by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN). The case was labeled Suit No. FHC/L/CS/760/2026.
The FCCPC stated that the court dismissed all claims from WASPAN and upheld the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations of 2025. The court confirmed that the rules were established under the FCCPC's legal powers.
The ruling also backed the key parts of the regulations that were disputed in the case. The court lifted a temporary order that had stopped the FCCPC from enforcing these rules.
"As a result, the legal barrier that made the Commission pause the DEON Regulations is no longer there. The Regulations are now fully operational and enforceable again," the statement said.
The FCCPC noted that WASPAN had questioned its right to create and enforce these regulations. After the court issued a temporary order in April, the commission put a hold on the regulations to follow the court's instructions.
In response to the court ruling, Ondaje Ijagwu, the FCCPC’s Director of Corporate Affairs, said they will keep doing their job according to the law.
"The Commission has always believed that the rule of law is key to good regulation and governance. When the Court gave its temporary order, we quickly stopped implementing the Regulations as directed," he explained.
He added, "Now that the Court has confirmed the validity of the DEON Regulations, we will continue to carry out our responsibilities properly and in line with the law."
Ijagwu mentioned that the regulations aim to promote responsible lending, enhance accountability, fight unfair practices, and boost consumer protection in Nigeria's digital lending space.
He stated that the FCCPC wants to ensure that innovation and financial inclusion grow within a clear and fair regulatory system. This is meant to build trust among consumers, investors, and responsible lenders.
Nigeria’s digital lending market has grown quickly in recent years. It provides short-term loans through mobile apps and online platforms to millions of people who often cannot get traditional bank loans.
But the sector has also faced many complaints about bad debt collection practices, unauthorized access to borrowers’ data, high fees, and breaches of privacy.
To tackle these issues, the FCCPC set up rules for registering digital lenders. They have also removed or punished several operators who broke consumer protection laws.
The DEON Regulations issued in 2025 aim to improve oversight of digital lenders by setting standards for licensing, consumer protection, transparency, and responsible lending.
This court ruling clears the legal hurdle that had stopped the FCCPC from enforcing the DEON Regulations. Now, the FCCPC can continue implementing its rules for digital lending operators.
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