The Federal Competition and Consumer Protection Commission (FCCPC) has established a firm January 5, 2026 deadline for all digital lending platforms operating in Nigeria to comply with newly implemented regulations.
Strict Compliance Timeline for Digital Lenders
In an official statement released by the Commission's Director of Corporate Affairs, Ondaje Ijagwu, the regulatory body emphasized that all digital lenders and intermediaries must achieve full compliance by January 5, 2026. This announcement represents a significant move by the Nigerian government to bring order to a sector that has faced widespread criticism for unethical practices including customer harassment, privacy violations, and predatory lending tactics.
The new regulatory framework, which initially took effect on July 21, 2025, operates under the authority of the Federal Competition and Consumer Protection Act of 2018. To facilitate the transition, the FCCPC has published comprehensive Guidelines on the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations.
Clear Guidelines and Documentation Requirements
According to the Commission, the newly released guidelines outline specific documentation requirements and operational standards that lending applications must follow. The regulations also include updated versions of Forms 1 and 3, reflecting feedback received from various stakeholders during consultation periods.
The FCCPC has encouraged companies with pending applications to proactively submit any additional required documents without waiting for formal requests from the Commission. The regulatory body has assured that review processes will continue without unnecessary delays, emphasizing that transparency remains a cornerstone of the compliance procedure.
Executive Vice Chairman Tunji Bello issued a strong warning to operators, stating that full compliance is now both a legal obligation and an essential step toward protecting Nigerian borrowers. Bello noted that the industry has benefited from an extended adjustment period and that the new guidance provides sufficient clarity for all stakeholders.
Enforcement Actions and Penalties
Once the January 5, 2026 deadline passes, the FCCPC will initiate enforcement measures against non-compliant entities. Potential penalties include operational restrictions, service suspensions, and possible legal prosecution under Nigerian law. The Commission has made it clear that every lending platform, service partner, and intermediary must comply without exception.
The necessary guidelines, required forms, and frequently asked questions have been made accessible through the FCCPC's official website and at its branch offices nationwide.
Background of Regulatory Intervention
Nigeria's digital lending industry experienced rapid growth, primarily driven by millions of unbanked citizens seeking accessible loans through mobile applications. However, this expansion also created opportunities for widespread abuse, with numerous unlicensed lenders charging exorbitant interest rates and employing intimidation tactics.
Common complaints included lenders exposing borrowers' contact information and sending defamatory messages to friends and family members of individuals who had taken loans.
By 2022, the volume of consumer complaints had reached a critical level, prompting the FCCPC to collaborate with the Central Bank of Nigeria, the National Information Technology Development Agency (NITDA), and the Independent Corrupt Practices Commission (ICPC) to form a joint task force focused on digital lending practices.
The 2025 Regulations and accompanying guidelines aim to permanently eliminate existing loopholes and establish sustainable order in the digital lending market. As of November 2025, the FCCPC has granted full approval to 438 digital lenders, demonstrating steady progress toward creating a safer and more accountable lending environment for Nigerian consumers.
