FCCPC’s DEON Regulations back in force following court ruling

Nigeria’s consumer protection agency has resumed implementation of its digital lending regulations after a court upheld the validity of the rules, bringing an end to a two-month suspension of their enforcement.

The Federal Competition and Consumer Protection Commission (FCCPC) had in April 2026 been restrained from enforcing the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 following an ex parte motion filed by the Wireless Application Service Providers Association of Nigeria (WASPAN).

The association challenged several provisions of the regulations, arguing that aspects of the framework would adversely affect its members. Specifically, it sought to stop the implementation of paragraphs 3, 7, 10, 12, 13, 14, 15, and 24, contending that they imposed burdensome obligations on businesses operating in the digital lending ecosystem.

A judge subsequently granted the request, preventing the FCCPC from implementing the regulations or imposing sanctions while the matter was before the court.

That order has now been set aside after the court ruled in favour of the FCCPC, affirming that the commission acted within the powers granted to it by law when it introduced the DEON Regulations.

“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance,” said Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC. “Now that the Court has affirmed the validity of the DEON Regulations and delivered judgement in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally, and in accordance with the law.”

The DEON Regulations have been widely regarded as a significant step toward bringing greater accountability to Nigeria’s digital lending industry. While digital lenders have expanded access to credit for millions of Nigerians through loan apps and other alternative lending platforms, the sector has also attracted operators guilty of predatory lending practices, opaque loan terms, privacy violations, and abusive debt recovery tactics.

The regulations establish minimum standards for providers of unsecured digital credit products, including cash loans, airtime advances, data advances, and barter-based lending services. They are designed to strengthen consumer protection by setting higher compliance requirements for market participants, mandating clearer disclosures to borrowers, and creating formal mechanisms for resolving disputes between lenders and consumers.

Among the provisions that drew objections from WASPAN are requirements that partnerships involving digital lenders receive FCCPC approval. Section 12 also requires operators to register with the commission and obtain regulatory approval before offering DEON lending services in Nigeria.

Following the judgement, the FCCPC said the DEON Regulations are “once again fully operational and enforceable,” clearing the way for the commission to resume oversight of Nigeria’s digital lending market under the 2025 regulatory framework.

Last updated: July 20, 2026