The federal government has rolled out the 2025 Electronic, Online, and Non-Traditional Consumer Lending Regulations, aimed at tackling the excesses of Digital Money Lenders and Mobile Money Operators (MMOs), popularly known as loan sharks. The announcement was made on Wednesday by Ondaje Ijagwu, Director of Corporate Affairs at the Federal Competition and Consumer Protection Commission (FCCPC).
Under the new rules, non-compliant operators risk heavy sanctions, including fines of up to ₦100 million or one per cent of turnover, and even disqualification of company directors for as long as five years. The regulations officially take effect from July 21, 2025.
FCCPC’s Executive Vice Chairman/CEO, Mr Tunji Bello, said the guidelines were designed to end years of consumer abuse, including harassment, defamation, and data privacy violations. He stressed that while digital innovation in finance is welcome, it must not come at the expense of consumers’ dignity or the rule of law.
The regulations outlaw automatic or pre-authorised lending, compel lenders to state loan terms clearly, and ban misleading marketing tactics. They also require that at least one provider in airtime and data lending services must be locally owned. Partnerships between lenders must be jointly registered, and anti-competitive agreements are prohibited without FCCPC’s approval.
All digital lenders, including platforms like FairMoney, Carbon, PayLater, Okash, and Aella, must register with FCCPC within 90 days and meet standards on transparency, data compliance, and consumer protection before receiving approval. The Commission has urged providers to visit its website for registration and compliance details.
This move marks the government’s strongest step yet against loan sharks, following earlier signals in 2023 that a comprehensive regulatory framework was in the works.
