Court Affirms FCCPC's Authority Over Digital Lenders

The Federal High Court in Lagos has affirmed the powers of the Federal Competition and Consumer Protection Commission (FCCPC) to regulate Nigeria’s digital lending industry. This landmark judgment clears the way for the immediate enforcement of the Commission’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025.

Background of the Case

The ruling came in response to a suit filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN), which challenged the FCCPC’s statutory authority to issue and enforce the DEON Regulations. Justice A.L. Allagoa, presiding over Suit No. FHC/L/CS/760/2026, dismissed the suit, upholding the validity of the DEON Regulations and confirming that they were issued within the Commission’s constitutional and statutory powers.

Implications of the Judgment

With this judgment, the FCCPC announced the immediate resumption of implementation and enforcement of the DEON Regulations across the digital lending ecosystem. The regulations aim to protect borrowers from abusive lending practices, data privacy breaches, and unethical loan recovery methods.

Ondaje Ijagwu, FCCPC Director of Corporate Affairs, stated that the judgment represents a significant legal victory for consumer protection and reinforces the Commission’s mandate to regulate digital, electronic, online, and other non-traditional consumer lending services in Nigeria.

Next Steps for Digital Lenders

Digital lenders operating in Nigeria are now required to comply fully with the DEON Regulations. This includes adhering to guidelines on transparent loan terms, ethical recovery practices, and the protection of consumer data. The FCCPC has indicated that it will resume monitoring and enforcement activities to ensure compliance and safeguard consumer interests in the digital lending space.