"No Consumer Should Be Harassed": Loan Apps in Nigeria Face N100m Fine Under New Regulations
- The FCCPC has introduced new regulations to protect Nigerians from harassment and exploitative practices by digital lenders
- The new regulations will ensure fair interest rates, ethical debt collection, and honest advertising, with penalties for violators
- The commission has urged consumers to report unregistered or abusive lenders through its complaint portal
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Federal Competition and Consumer Protection Commission (FCCPC) has introduced new rules to stop unfair practices by loan apps that harass borrowers or invade their privacy.
In a statement on Wednesday, September 3, 2025, the FCCPC said the regulations, which started in July, aim to protect millions of Nigerians who use digital lenders for quick loans.
Source: Getty Images
The rules, called the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, target problems such as high interest rates, misuse of personal data, aggressive debt recovery, harassment, and unhealthy competition in the lending sector.
The measures, issued under Nigeria’s 2018 consumer protection law, are designed to ensure fairness, transparency, responsible lending, data protection, and a clear process for complaints.
FCCPC rules ban exploitative loan app practices
Many Nigerians had complained about lenders sending abusive messages, defaming borrowers, or even declaring them dead when they missed repayments. Rights groups have also condemned these actions as harassment.
FCCPC chief executive, Tunji Bello, said the move would finally end years of harassment, public shaming, and unethical practices by unregulated digital lenders.
Bello said:
“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.
“This Regulation provides the legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending."
New rules aim to sanitise loan app market
Under the new rules, all loan apps must register with the FCCPC within 90 days and follow standards on fair interest rates, ethical debt recovery, and honest advertising.
Any company that disobeys faces fines of up to N100 million or 1% of its annual turnover, while their directors risk a five-year business ban.
The regulations also forbid automatic loans without consent, misleading adverts, and unclear loan terms.
Telecom-based lending, like airtime or data loans, must include at least one Nigerian-owned partner and be registered with the commission.
Source: Getty Images
Mr. Bello said the new rules give regulators the power to punish violators and promote responsible lending.
The FCCPC also encouraged citizens to report illegal lenders, unfair charges, or privacy violations through its complaint portal.
Source: Legit.ng
