FCCPC targets 100 unregistered loan apps as compliance window closes

The Federal Competition and Consumer Protection Commission (FCCPC) has intensified its crackdown on Nigeria’s digital lending sector, placing over 100 unregistered loan apps on its enforcement radar following the expiration of a key compliance deadline on January 5, 2026.

The move forms part of a broader effort to eliminate exploitative practices that have long plagued borrowers, including exorbitant interest rates, aggressive debt collection tactics involving harassment, defamation, and unauthorized access to personal data such as contacts, photos, and messages.

In a recent official statement posted on its X account, Tunji Bello, FCCPC executive vice chairman and CEO announced the commencement of phased enforcement actions against Digital Money Lending (DML) operators that failed to regularize under the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).

“The compliance window provided under the Regulations has now closed. At this stage, the Commission is proceeding with appropriate enforcement steps in a manner that is fair, orderly, and consistent with due process. The objective is to promote discipline, transparency, and consumer confidence within the digital lending space, not to disrupt legitimate business activity,” Bello stated.

As an immediate measure, the FCCPC has withdrawn conditional approval status from non-compliant operators previously listed provisionally, effectively removing them from the Commission’s public register of approved digital lenders.

Bello emphasized that this register serves as a critical consumer safeguard tool.“Consumers are advised to exercise caution when dealing with digital lenders that do not appear on the Commission’s current list of approved operators,” he added.

The Commission has also initiated structured engagements with app hosting platforms (such as Google Play and Apple App Store) and payment service providers to restrict operations of violators, building on prior collaborations that have helped curb unethical behavior.

Industry data shows that 521 digital lending companies are now under FCCPC oversight, with 457 holding full approval and others operating conditionally. However, more than 100 loan apps, operated by unregistered entities, remain on the regulator’s watchlist, facing potential bans, fines up to N100 million (or one percent of annual turnover), operational suspensions, and director disqualifications.

The DEON Regulations, introduced on July 21, 2025, responded to widespread consumer complaints and investigations revealing persistent violations despite earlier interventions. These include an 80 percent reduction in harassment cases following a 2022 interim framework, yet challenges like privacy breaches, currently under probe by the Nigeria Data Protection Commission (NDPC) in over 400 cases, continued to drive the need for stricter oversight.

For operators granted provisional eligibility during the transition, the FCCPC has extended a final compliance window until April 2026. Failure to meet this deadline could trigger escalated sanctions.

The enforcement push underscores the government’s determination to foster a fair, transparent digital credit market that protects vulnerable borrowers while allowing compliant businesses to thrive.

Consumers are urged to verify lenders against the official FCCPC register and report suspicious activities to safeguard their rights in Nigeria’s evolving fintech landscape.

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.

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