Registered Loan Apps in Nigeria Hit 492 as FCCPC Enforces N100 Million Fine Rule

The number of officially registered digital lending companies in Nigeria has surged to 492, following the enforcement of a new rule by the Federal Competition and Consumer Protection Commission (FCCPC). The regulation, introduced to curb unethical practices in the lending industry, has compelled many operators to register in order to avoid hefty penalties of up to ₦100 million.

Rise in Digital Lender Registrations

As of May this year, there were 425 registered digital lenders in Nigeria, according to FCCPC data. Within just a few months, an additional 67 companies joined the list as the Commission intensified efforts to clean up the digital lending sector.

FCCPC’s database reveals that 434 of the 492 lenders have received full approval, 36 hold conditional approval, while 22 are licensed by the Central Bank of Nigeria (CBN). Although CBN-licensed lenders are exempt from the FCCPC registration requirement, the Commission continues to monitor their activities to ensure compliance with consumer protection standards.

Despite the rise in registered companies, the FCCPC noted that 103 loan apps remain under regulatory watch due to unresolved issues or potential violations of consumer protection laws.

Why the New Regulation Matters

The Executive Vice Chairman and Chief Executive Officer of FCCPC, Mr. Tunji Bello, explained that the new lending regulations were necessary to address long-standing complaints of harassment, privacy breaches, and unethical debt recovery practices among online loan providers.

“For too long, Nigerians have endured harassment and data abuse by unregulated digital lenders. These new regulations clearly define acceptable practices in the lending space. Innovation is welcome, but it cannot come at the expense of consumer rights or the rule of law,” Bello said.

He added that the regulations will enable the FCCPC to hold violators accountable, promote responsible lending, and protect Nigerians from predatory loan operators.

Key Provisions of the New FCCPC Lending Rules

The Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations establish a legal framework for registering, monitoring, and sanctioning all forms of digital lending in Nigeria.

The rules apply to all unsecured consumer lending conducted through online, mobile, or electronic channels and include several important provisions such as:

• Mandatory registration for all digital lenders operating in Nigeria.
• Transparent loan terms, requiring lenders to clearly disclose repayment conditions, interest rates, and tenors.
• Prohibition of pre-authorised or automatic lending without consumer consent.
• Ban on unethical marketing and harassment of borrowers.
• Restriction on access to customers’ contacts, photos, and personal data.
• Mandatory local ownership of at least one service provider for airtime and data lending platforms.
• Prohibition of monopolistic partnerships without prior FCCPC approval.

Reactions from Industry Stakeholders

The President of the Money Lenders Association (MLA), Mr. Gbemi Adelekan, welcomed the new regulation, describing it as a positive step toward restoring credibility to Nigeria’s digital lending ecosystem.

According to him, “The new rules will compel lenders to rely more on credit bureaus instead of harassment for debt recovery. It’s a move that promotes fairness and discipline in the market.”

Adelekan also noted that many lenders in Nigeria are former bankers or retired professionals entering the fintech space because of its low entry barrier compared to microfinance banking, which requires extensive licensing procedures.

Background and Enforcement

The 2025 regulations build upon the earlier Limited Interim Regulatory Framework for Digital Lending (2022), which introduced mandatory registration for online money lenders. However, despite these measures, incidents of borrower harassment and defamation persisted.

To address this, the FCCPC has now intensified enforcement and can impose penalties such as:

• Fines of up to ₦100 million or 19% of a company’s annual turnover.
• Disqualification of directors for up to five years for serious offenses.
• Delisting of loan apps from Google Play Store for violating consumer rights.

The FCCPC emphasized that it is working closely with the CBN, Google, and other regulatory stakeholders to ensure full compliance and continued monitoring of all digital lending operations across the country.

The Bigger Picture

Nigeria’s digital lending market has grown rapidly over the past few years, driven by the demand for quick access to credit and the rise of fintech innovation. However, this growth has also led to widespread abuse of customer data, excessive interest rates, and unethical recovery tactics by unregulated operators.

With the new regulation in place, the government aims to restore confidence in the sector and protect consumers from financial exploitation. Borrowers are now advised to only transact with FCCPC-approved loan apps to avoid scams and harassment.

What This Means for Borrowers and Lenders

For consumers, this development means better data protection, clearer loan terms, and fairer interest rates. Borrowers now have legal backing against harassment and can report violations directly to the FCCPC for redress.

For lenders, compliance is no longer optional. Registration with the FCCPC is a legal requirement, and failure to comply could result in severe financial and operational consequences.

The new digital lending regulations represent a major turning point in Nigeria’s financial technology landscape. By enforcing strict compliance standards and imposing heavy penalties for violations, the FCCPC is reshaping the loan app industry into a more transparent, ethical, and consumer-friendly environment.