Over 100 loan apps flagged as watchdog moves to clean up Nigeria’s booming digital credit market
A total of 521 digital lending companies are now under the regulatory oversight of the Federal Competition and Consumer Protection Commission (FCCPC), as the Commission intensifies efforts to sanitise Nigeria’s rapidly expanding digital credit space.
The development follows the expiration of the January 5 deadline set for full compliance with the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
The FCCPC had earlier directed all digital lenders whether operating through mobile apps, online platforms or other non-traditional channels to register with the Commission and align their operations with the new regulatory framework on or before January 5, 2026.
With the deadline now elapsed, records from the Commission show a sharp rise in the number of lending firms submitting to regulatory oversight, underscoring both heightened enforcement and the rapid growth of Nigeria’s digital lending ecosystem.
What the FCCPC data shows
According to FCCPC records, 457 of the 521 registered lenders have been granted full regulatory approval, while 35 companies currently operate under conditional approval.
An additional 29 lenders, although licensed by the Central Bank of Nigeria (CBN), also fall within the FCCPC’s regulatory scope under the new framework.
Despite the growing number of compliant operators, the Commission disclosed that 103 loan applications run by unregistered companies have been placed on its regulatory watchlist and are subject to enforcement actions.
The FCCPC has repeatedly warned that digital lenders operating outside its approval framework risk sanctions, including delisting from app stores, financial penalties, and possible criminal prosecution.
Concerns over regulatory capacity
While the rising number of registered lenders highlights the scale of Nigeria’s consumer credit market, industry observers have raised concerns about the FCCPC’s ability to effectively supervise such a large and growing sector.
A Lagos-based financial analyst, Adewale Adeoye, said the Commission’s efforts to regulate the industry are commendable but may face capacity constraints.
“The FCCPC is responsible for consumer protection across all sectors of the economy, and digital lending is only one part of that mandate. Monitoring over 500 registered companies alone requires significant resources, not to mention the hundreds of illegal operators still active,” he said.
Adeoye also noted that the new rules extend FCCPC oversight beyond loan apps to include lenders operating without digital platforms, further increasing the complexity of enforcement.
Similarly, the President of the Money Lenders Association (MLA), Mr. Gbemi Adelekan, acknowledged that enforcement could become overwhelming due to the sheer number of players in the space.
He added that the regulations now cover IT platforms supporting digital lenders, which further broadens the Commission’s supervisory responsibilities.
“We have raised these concerns with the FCCPC, and they have assured us they are prepared. They are very responsive at the moment, but how this holds up as more issues emerge remains to be seen,” Adelekan said.
Key provisions of the 2025 lending regulations
The Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 establish a comprehensive legal framework for the registration, monitoring and sanctioning of all forms of digital and non-traditional lending in Nigeria.
The rules apply to unsecured consumer loans offered through electronic, online, mobile or other non-traditional channels and spell out requirements on registration, transparency, data protection, ethical loan recovery, fair pricing and responsible lending practices.
The regulations prohibit pre-authorised or automatic loans, require lenders to present clear and accessible loan terms, ban unethical marketing practices, and mandate local ownership of at least one service provider for airtime and data lending services.
They also require joint registration of lending partnerships, prohibit anti-competitive or dominance-based agreements without FCCPC approval, and bar loan apps from accessing customers’ contact lists, photos and transaction data.
According to the FCCPC, the regulations introduced on July 21, 2025, under the Federal Competition and Consumer Protection Act (FCCPA) 2018 are aimed at promoting fairness, transparency and accountability in the digital lending market.
While lenders were given until January 5, 2026, to comply, the Commission confirmed that enforcement actions would begin immediately after the deadline.
Sanity returning, but challenges remain
Adelekan said the new regulatory framework has already begun to restore order in the sector, with a noticeable decline in customer complaints against digital lenders.
However, he warned that some borrowers are now exploiting the system by taking loans from multiple platforms without repayment.
“We have seen cases where an individual borrowed from as many as 35 platforms and still applied for more loans. This is why we continue to advise our members to fully integrate with credit bureaus and ensure timely reporting,” he said.
He added that Nigeria’s credit bureaus are improving their systems to provide real-time credit reports, which should help lenders manage risk more effectively.
What you should know
The 2025 regulations build on the Limited Interim Regulatory and Registration Framework for Digital Lending issued in 2022, which made registration mandatory for digital lenders.
Despite earlier efforts, borrower harassment and defamation remained widespread, with sanctions largely limited to app removals from the Google Play Store, prompting many lenders to switch to APK-based distribution.
Under the new regulations, non-compliant digital lenders face stiffer penalties, including fines of up to ₦100 million or 19 per cent of annual turnover, as well as possible disqualification of directors for up to five years.
