FCCPC Compliance Deadline – Implications For Digital Money Lenders

1. Introduction

The Federal Competition and Consumer Protection Commission (the "Commission") is responsible for the administration and enforcement of the Federal Competition and Consumer Protection Act 2018 (the "FCCPA" or the "Act"). In carrying out its mandate, the Commission contributes to Nigeria's economic development by safeguarding consumer rights, promoting competitive markets, and enforcing the provisions of the Act and any subsidiary legislation made pursuant thereto.

In July 2025, the Commission, pursuant to Section 17, 18 & 163 of the Act, introduced the Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025 (the "Regulations"), establishing a regulatory framework for the provision of digital and electronic consumer lending services in Nigeria.

According to the Commission, the Regulations are in furtherance of the Commission's obligation and function to protect consumers and ensure a competitive and optimized market, provide standards, guidelines and guidance to undertakings, their collaborators, affiliates, associates, or partners with respect to the provision of applicable Consumer Lending Services.

The Commission further stated that the Regulations are in addition to, and not a substitute for compliance requirements under other laws apart from the Act, any other Regulations or relevant oversight by other applicable regulators. That the Regulations do not preclude compliance with any provisions of the Act, and compliance with the Regulations shall not be an acceptable defence for failure to comply with any provisions of the Act, or any other law in force.

Following the introduction of the Regulations, the Commission has determined the need to outline its general approach to the administration and operation of the Regulations. Consistent with its statutory mandate under Sections 17(a), (g), (m), (s), (t), (x), (y) and 18 of the Act, and in furtherance of its objective of protecting consumers and ensuring competitive and efficient markets, the Commission issued the Digital, Electronic, Online, or Non-traditional Consumer Lending Guidelines 2025 (the "Guidelines"). The Guidelines are intended to contextualize, clarify, and supplement the provisions of the Regulations.

The Regulations came into effect on 21 July 2025. Every lender or provider of monetary value in cash or services enumerated under Regulation 3 of the Regulations is mandated to comply with the Regulations.

2. Deadline for compliance

On Thursday, 13 November 2025, the Commission announced that it has set Monday, 5 January 2026 as the deadline for full compliance with the Regulations.

The Executive Vice Chairman of the Commission stressed that full compliance is not only a legal requirement but an important step in protecting consumers and ensuring that the sector continues to grow in a fair and responsible manner. He stated that operators have had ample time to adjust to the Regulations and the additional guidance and that the Commission expects all obligations to be met before the deadline.

According to the Vice Chairman, enforcement will begin immediately after the deadline and that enforcement measures might include restricting non-compliant entities from operating, directing partners or platforms to cease dealing with them, and applying other sanctions permitted under the law (monetary sanctions could be as high as N50,000,000 for individuals and N100,000,000 for corporate bodies).

3. Relevant Provisions of the Regulations

We shall highlight relevant provisions of the Regulations under the following headings:

• Applicability and scope of the Regulations;
• Objectives of the Regulations;
• Eligibility and Registrations; and

• Applicability and scope of the Regulations
  • Applicability of the Regulations

Regulation 3 provides that the Regulations shall apply to:

• all applicable transactions of unsecured loans, including any lending to consumers either by way of cash, airtime, data, cashback, services, barter in exchange for specific or verifiable monetary value regardless of how value or interest component is calculated or derived so long as such transaction occur by digital, electronic, online, or non-traditional means.
• every lender or provider of monetary value in cash or services, or otherwise either as a credit or advance with an expectation of return either in cash or otherwise together with, or separate from associated interests, and shall extend to parties, undertakings or persons involved in the transaction either as primary, or secondary lender, or a vendor, service provider or partner/collaborator with the lender to the extent that any such person, party or undertaking receives benefit or a portion of the revenue associated with the transaction.
• with respect to persons or undertakings operating in a Regulated Industry under the Act pursuant to the provisions of Sections 104 and 105 of the Act.

• Scope of the Regulations

Regulation 4 provides that the applicability of these Regulations shall:

• extend to persons, parties or undertakings doing business in Nigeria either physically, electronically or otherwise to the extent that such carry on or participate in commercial activity in Nigeria under Sections 2 and 3 of the Act.
• cover the extent that licenses or jurisdiction over operations are territorially limited such as within a state for the purpose of jurisdictional authority to regulate between the federal and state government; where such business or operation either by contemplation or reality or both are not territorially limited within any state and by operation are intended or do actually occur beyond state lines, to the extent of such cross state operations and realities.
• cover any component of the business or operation hosted or conducted or transmitted on platforms, infrastructure, or technology that is for all intent and purpose intended to extend, reach, and or operate beyond any single state of the federation.
• extend to any person providing applicable Consumer Lending Services under these Regulations in a Regulated Industry under the Act, such regulatory oversight shall continue and remain valid under the enabling instruments or enactments without prejudice to the provisions of these Regulations.
• extend to any license, approval, permission of clearance by the Commission pursuant to these Regulations, substitute or be considered equivalent, or discharge of any responsibility or requirement to be otherwise licenced, approved or permitted by any Regulated Industry regulator for the purpose of the business of the lender.

• Objectives of the Regulations

Regulation 5 provides that the objectives of the Act include the protection and promotion of the interests of consumers by providing consumers with wider variety of quality products at competitive prices.

Regulation 6 further provides that in furtherance of the objectives of the Act, the Commission has the function and the power to amongst other things – (a) protect and promote consumer interests pursuant to the provisions of any other extant laws; (b) ensure that consumers' interests receive due consideration at appropriate fora and provide redresses to obnoxious practices or the unscrupulous exploitation of consumers by companies, firms, trade associations or individuals.

• Eligibility and Registrations
  • Regulation 7 provides that every undertaking involved in the provision of Consumer Lending Services as a Lender/Service Provider or other ancillary support prior to the commencement of these Regulations shall, where eligible, apply to, and receive the Commission's approval to continue to offer such services or engage in the conduct that is subject of these Regulations no later than 90 (ninety) days from the commencement of these Regulations.
    
    Regulation 8 further provides that where any undertaking participating in, or intends to participate in Consumer Lending, Services specifically including, but not limited to entering any agreement, contract, joint venture, or other mutual understanding for the purpose of providing lending, vendor or ancillary, related, associated or subsidiary services, engages in services that are otherwise subject of regulation by any other regulator, such undertaking shall be prohibited from entering such agreement, joint venture, partnership or understanding unless the undertaking has a valid, subsisting, unexpired or otherwise restricted permit, licence or approval of the relevant regulator for the purpose of carrying on such activities or services.

• Registration Requirements

On the requirements for registration, Regulation 12 (1) provides as follows:

Any undertaking desirous of providing Consumer Lending Services either by way of cash, cashback services, barter in exchange for specific or verifiable monetary value regardless of how value or interest component is derived shall submit the following to the Commission for approval –

• an agreed Consumer Lending Services Agreement and such other addendum or ancillary Agreements thereto;
• an application in any approved form, or containing all information required under these Regulations;
• completed Forms in Schedule 1 and 2;
• evidence of payment of applicable fees;
• a copy of the license duly issued by the Sector Regulator (where applicable);
• Certificate of incorporation, CAC Status Report or Memorandum and Articles of Association of the applicant(s);
• a detailed list and profile of members of the Board of Directors and key management personnel of the applicant(s);
• list of the shareholders of the applicant[s], including detailed information of the ultimate beneficiaries or beneficial owners of any interests in the applicant(s);
• evidence of the proposed Lender's financial capacity to finance the Services, such as audited financial statements for the three (3) fiscal years preceding the application or less where the company has not been in business for that long, evidence of financial backing from third-party financiers including any lending arrangement between the company and a financier (where applicable) or such other relevant documents demonstrating source of funds and its financial capacity;
• standard terms and conditions for the provision of Consumer Lending Services or the Consumer Lending Contract;
• additional documents as stated in Schedule 3 of these Regulations; and
• such other documents or details as the Commission may request from time to time.

• Penalties

Regulation 27 provides for penalties for failure to comply with the provisions of the Regulations. It provides as follows:

• Any person or undertaking found to be in contravention of the provisions of these Regulations shall be liable to sanctions, which may include fines, suspension of operations, or delisting of their registration, or revocation of approval.

• In the event of a fine, where a defaulting undertaking is a –
  • a natural person, is liable to an administrative penalty not exceeding Fifty Million Naira (N50,000,000.00);
  • a body corporate, shall be liable to an administrative penalty not exceeding One Hundred Million Naira (N100,000,000) or 1% of its turnover in the previous year, whichever is greater.
  • each director of an undertaking referred to in Regulations 26.2(b) is liable to be proceeded against and dealt with as specified under Regulations 26.2(a). Such sanction may include disqualification as a director for a period not exceeding five (5) years.

4. Conclusion

the objective of the Regulations is to advance and protect consumers' interests and to provide redresses to obnoxious practices or the unscrupulous exploitation of consumers by companies, firms, trade associations or individuals. It is by ensuring strict compliance to the Regulations that the Commission hopes to achieve the objective.

Penal measures put in place by the Commission in the event of failure to comply include administrative sanctions against the individual, company and directors alike.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.