FCCPC resumes digital lending regulation after court victory

The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025. This action follows a significant Federal High Court judgment that upheld the validity of these regulations, thereby removing a key legal impediment.

The court's decision, delivered by Justice A.L. Allagoa in Lagos, dismissed the originating summons filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN). The court rejected all reliefs sought by WASPAN and affirmed that the FCCPC acted within its statutory and constitutional powers when creating the DEON Regulations. Specific provisions challenged by WASPAN were also upheld.

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The Federal Competition and Consumer Protection Commission has resumed implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).

With the interim ex parte order that had previously restrained the commission now discharged, the DEON Regulations are fully operational and enforceable. The FCCPC had suspended these regulations in April 2026 in compliance with the court's directive, demonstrating its commitment to the rule of law. This development marks a renewed effort by the Nigerian government to strengthen oversight of the rapidly expanding digital lending sector.

The regulations aim to establish clearer standards for digital lending businesses and address concerns regarding unfair practices, consumer exploitation, and accountability. The FCCPC's resumption of enforcement signifies a commitment to protecting consumers and ensuring a more regulated environment for online lending platforms.

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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.