Court Issues Interim Injunction Against FCCPC's Digital Lending Rules
The Federal High Court in Lagos has granted an interim injunction to restrain the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing key sections of its newly introduced Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025. This legal action comes in response to a motion filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), which is contesting the validity and implementation of these regulations.
Legal Challenge by WASPA Nigeria
WASPA Nigeria approached the court on April 14, 2026, seeking urgent judicial intervention to halt the enforcement of the regulatory framework, commonly referred to as the Deon Consumer Lending Regulations. The association argued that the FCCPC's regulations would negatively impact its members, who are active participants in Nigeria's digital and online consumer lending sector.
In its application, WASPA Nigeria requested the court to prevent the FCCPC from implementing, enforcing, or taking any actions under the disputed regulations until the legality of the framework is determined. Specifically, the association urged the court to restrain the commission from enforcing various provisions, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32. Additionally, it sought to stop the FCCPC from imposing sanctions, penalties, or fines on its members, as well as from issuing directives that could disrupt their operations.
Court's Ruling and Interim Protection
Justice Ambrose Lewis-Allagoa, after hearing submissions from counsel to the applicant, Kemi Pinheiro (SAN), alongside Bolu Agbaje Akadri and Muyiwa Odubela, ruled that the applicant had presented a compelling case warranting interim protection pending further hearings. The judge considered the motion ex parte and a supporting affidavit sworn by Ayo Stuffman, a Nigerian citizen residing in Lagos, and concluded that an interim order of injunction was justified under the circumstances.
Accordingly, the court restrained the FCCPC from enforcing or giving effect to the contested provisions of the regulations, pending the hearing and determination of the motion on notice for an interlocutory injunction. The judge also barred the commission from taking any steps that would interfere with or prevent WASPA members from continuing to provide services or products regulated under this framework.
This ruling highlights ongoing tensions between regulatory bodies and industry stakeholders in Nigeria's rapidly evolving digital lending landscape, with potential implications for consumer protection and business operations in the fintech sector.
