The number of officially registered digital lenders in Nigeria, commonly known as loan apps, has surged to 492 as more companies rushed to comply with new regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC) to avoid hefty fines.
The surge follows the implementation of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which took effect on July 21, 2025. The rule mandates all digital lenders in Nigeria to register with the FCCPC within 90 days of starting operations or face severe penalties.
According to the FCCPC, non-compliant lenders could face fines of up to ₦100 million or 19% of annual turnover, alongside the possible disqualification of directors for as long as five years.
Sharp increase in registrations
FCCPC data shows that as of May 2025, the number of registered digital lenders stood at 425. This means 67 new lenders have completed registration in the last few months.
Out of the 492 approved companies, 434 have received full approval, 36 hold conditional approvals, while 22 are licensed directly by the Central Bank of Nigeria (CBN) — which exempts them from FCCPC registration but keeps them under regulatory watch.
Despite this progress, 103 loan apps remain under the Commission’s watchlist for possible sanctions.
Why the new rules matter
According to the FCCPC’s Executive Vice Chairman, Tunji Bello, the regulations aim to address widespread unethical practices among digital lenders, including harassment, defamation, and data privacy violations.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said. “These regulations draw a clear line that innovation is welcome, but not at the expense of consumers’ rights and dignity.”
The FCCPC emphasized that the new framework promotes responsible digital finance, ensuring transparency, fair interest rates, and lawful debt recovery methods.
Key features of the 2025 lending regulations
The new framework establishes clear operational and ethical standards for digital and non-traditional lenders. Highlights include:
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Mandatory registration of all electronic and mobile lenders
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Strict data privacy rules prohibiting access to users’ contacts, photos, or transactions
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Transparent disclosure of loan terms, interest rates, and repayment plans
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Bans on automatic lending, deceptive marketing, and monopolistic partnerships
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Requirement for at least one locally owned service provider for airtime and data lending services
Industry reactions
The President of the Money Lenders Association (MLA), Gbemi Adelekan, welcomed the reforms, noting that they would restore trust in the digital lending space and push lenders to adopt credit bureau systems for debt recovery.
“It’s a good step in the right direction,” Adelekan said. “These rules will compel lenders to act responsibly and clearly state all loan conditions.”
He also noted that many retired bankers and entrepreneurs are entering the digital lending sector due to its lower entry barriers compared to traditional microfinance banking.
Background
The new regulation builds on the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending (2022), which first required all digital money lenders to register with the FCCPC.
However, harassment, privacy violations, and defamation of borrowers have persisted, prompting the Commission to toughen enforcement.
The FCCPC said it will continue working with the CBN, Google, and other stakeholders to ensure full compliance and protect Nigerian consumers from unethical digital lending practices.
