Nigeria’s digital lending space has come under tighter regulatory scrutiny as 521 digital loan providers are now operating within the oversight framework of the Federal Competition and Consumer Protection Commission (FCCPC).
The move follows the expiration of the January 5 deadline for compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, introduced to address consumer abuse and unethical lending practices.
Under the directive, all digital lenders, whether app-based, web-based, or operating through alternative channels, were required to register with the Commission by January 5, 2026. FCCPC records show a surge in registrations after enforcement intensified.
Approval Status of Registered Digital Lenders
Data from the FCCPC reveals the following breakdown among the 521 registered lenders:
- 457 companies have obtained full regulatory approval
- 35 firms are operating under conditional approval
- 29 lenders licensed by the Central Bank of Nigeria remain subject to FCCPC rules
Despite the progress, the Commission disclosed that 103 loan applications run by unregistered operators have been flagged and placed on a regulatory watchlist.
Regulator Reiterates Zero Tolerance for Non-Compliance
The FCCPC has warned that digital lenders operating outside its approval framework face strict sanctions. These include removal of loan apps from app stores, financial penalties, and possible legal action.
According to the Commission, the regulations are intended to curb exploitative interest rates, data privacy violations, and aggressive debt-recovery tactics that have plagued Nigeria’s digital lending market.
Experts Warn of Enforcement Pressure
Industry analysts acknowledge the progress but caution that enforcement could become increasingly difficult as the number of regulated entities grows.
Lagos-based financial analyst, Mr Adewale Adeoye, said supervising more than 500 registered lenders, alongside numerous illegal operators, could stretch the FCCPC’s resources.
“The Commission oversees consumer protection across the entire economy. Digital lending is just one segment, yet it already involves hundreds of players that require constant monitoring,” he said.
He added that the expanded scope of the regulations, which now includes non-app-based lenders, further complicates regulatory supervision.
Money Lenders Association Weighs In
In comments to Nairametrics, the President of the Money Lenders Association (MLA), Mr. Gbemi Adelekan, also acknowledged the scale of the task before the FCCPC.
He noted that the updated guidelines extend the Commission’s authority to technology platforms that support digital lenders, increasing the complexity of enforcement.
“We’ve raised these concerns with the FCCPC. They’ve been responsive so far, but the real challenge will be sustaining that responsiveness as more regulatory issues emerge,” Adelekan said.
What This Means for Nigeria’s Digital Credit Sector
Bringing 521 digital lenders under FCCPC regulation represents a significant milestone in Nigeria’s effort to formalise its consumer credit market.
While the reforms strengthen consumer protection and industry accountability, stakeholders say long-term success will depend on sustained enforcement, adequate institutional capacity, and continued engagement with industry players as the digital lending ecosystem continues to expand.
