Loan App Registrations Surge to 492
The Federal Competition and Consumer Protection Commission (FCCPC) has confirmed that the number of registered digital lenders, popularly known as loan apps, has climbed to 492 as of October 2025, following the rollout of a new regulatory rule that threatens steep penalties for non-compliance.
This surge comes after the FCCPC enforced the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which took effect on July 21, 2025. The new rule mandates that all digital lenders register with the Commission within 90 days or risk sanctions of up to ₦100 million or 19% of their turnover, in addition to the potential disqualification of directors for up to five years.
Lenders Rush to Avoid Fines
As of May 2025, FCCPC data showed 425 registered digital lenders, meaning 67 new companies have completed registration in the last few months alone.
The Commission’s updated database reveals that:
- 434 companies have secured full approval,
- 36 have conditional approval, and
- 22 lenders, licensed by the Central Bank of Nigeria (CBN), are being tracked but exempt from direct FCCPC registration.
Despite the progress, 103 unregistered lenders remain under regulatory watch for potential enforcement actions.
New Regulations Aim to Curb Harassment and Data Abuse
According to FCCPC Executive Vice Chairman/CEO, Mr Tunji Bello, the 2025 regulations were introduced to eliminate unethical practices and protect consumers from the widespread harassment and data privacy violations that had plagued Nigeria’s digital lending sector.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello stated. “These regulations draw a clear line, innovation is welcome, but not at the expense of consumer rights and dignity.”
The rules ban pre-authorised lending, automatic deductions, and access to users’ contacts, pictures, and transaction data. They also require full disclosure of loan terms, ethical debt recovery, and transparent interest rates.
Key Provisions of the 2025 Digital Lending Regulations
The new FCCPC lending framework sets out several mandatory compliance requirements for digital lenders, including:
- Registration and licensing with the FCCPC.
- Transparent loan conditions, including tenor, rates, and repayment terms.
- Mandatory local ownership for airtime and data-lending service providers.
- Joint registration of all lending partnerships.
- Prohibition of dominance-based agreements without prior FCCPC approval.
- Ban on unethical marketing and invasion of privacy.
Industry Reaction and Growing Participation
Mr Gbemi Adelekan, President of the Money Lenders Association (MLA), welcomed the development, describing it as “a good step in the right direction” for the ecosystem.
“It will compel many lenders to start using the credit bureau for debt recovery instead of resorting to harassment,” Adelekan said.
He noted that many retired bankers and corporate professionals are entering the digital lending industry, drawn by low entry barriers compared to traditional banking or microfinance licensing.
FCCPC Tightens Enforcement
The 2025 Regulations build upon the Limited Interim Regulatory Framework and Guidelines for Digital Lending (2022), which introduced the first phase of lender registration. However, despite earlier efforts, cases of borrower harassment and defamation have persisted.
The FCCPC has now pledged to enforce stricter sanctions, including delisting violators’ apps from the Google Play Store and collaborating with the CBN, Google, and security agencies to ensure full compliance.
“No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending,” Bello emphasized.
