Nigerian Digital Lenders Face Hefty Fines in Crackdown on Unethical Practices
Nigeria’s booming digital lending sector is under intense scrutiny. New regulations from the Federal Competition and Consumer Protection Commission (FCCPC) signal a significant crackdown on unethical practices, with substantial financial penalties for non-compliance. These updated rules aim to protect consumers within the rapidly growing $2.1 billion consumer lending market, demanding accountability and transparency from digital lending platforms operating in Nigeria.
Stiff Penalties for Digital Lending Violations
The FCCPC’s Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which were released in July, introduce far stricter enforcement measures than previous interventions. Companies found to be engaging in unethical practices now face penalties of up to ₦100 million or 1% of their annual turnover, whichever amount is greater. Individual perpetrators could be fined up to ₦50 million, and company directors could face sanctions, potentially including prohibitions from participating in the industry for as long as five years. This comprehensive approach replaces earlier, more ad-hoc interventions and demonstrates a resolute effort to curb predatory lending and protect Nigerian consumers from unfair practices.
These new regulations represent a major step toward ensuring responsible lending practices within Nigeria’s digital financial ecosystem, and they are expected to reshape the landscape of the country’s digital lending sector.
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