The judgment clears the way for the commission to enforce rules aimed at promoting responsible lending and protecting borrowers in Nigeria’s digital lending market.
The Federal Competition and Consumer Protection Commission (FCCPC) has resumed implementation and enforcement of its Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, following a Federal High Court’s affirmation of its authority to regulate Nigeria’s digital lending sector.
According to the FCCPC, the court dismissed the plaintiff’s originating summons in its entirety, rejected all the reliefs sought and upheld the validity of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations, 2025.
The commission said the court held that the regulations were made pursuant to its statutory and constitutional powers and were therefore within its legal authority.
It added that the court also upheld the specific provisions of the regulations challenged in the suit and discharged the interim ex parte order that had restrained their implementation and enforcement.
“As a result, the legal impediment that had necessitated the Commission’s temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable,” the statement said.
The FCCPC recalled that WASPAN had challenged its authority to issue and implement the regulations.
Following the court’s interim order in April, the commission said it immediately suspended implementation and enforcement of the regulations in compliance with the directive, pending the determination of the suit.
Reacting to the judgment, the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, said the commission would continue to carry out its regulatory responsibilities in line with the law.
“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive,” he said.
He added that, “Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.”
Mr Ijagwu said the regulations are intended to promote responsible lending, strengthen regulatory accountability, curb unfair and exploitative practices, and improve consumer protection in Nigeria’s growing digital lending market.
According to him, the commission’s objective is to ensure that innovation and financial inclusion thrive within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators.
Nigeria’s digital lending industry has expanded rapidly in recent years, offering short-term loans through mobile applications and online platforms to millions of consumers, many of whom have limited access to conventional bank credit.
However, the sector has also attracted widespread complaints about unethical debt-recovery practices, unauthorised access to borrowers’ personal data, excessive charges, and violations of consumer privacy.
To address these concerns, the FCCPC introduced a registration and regulatory framework for digital lenders and has since delisted or sanctioned several operators that violated consumer protection rules.
The DEON Regulations, issued in 2025, seek to strengthen oversight of digital lending operators by setting standards for licensing, consumer protection, transparency and responsible lending practices.
The judgment removes the legal obstacle that had temporarily halted enforcement of the DEON Regulations, allowing the FCCPC to resume implementing the regulatory framework for digital lending operators.
