Court clears FCCPC to regulate digital lenders, resumes...

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, clearing the way for the immediate enforcement of the Commission’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025.

The landmark judgment strengthens the regulatory framework for Nigeria’s fast-growing digital lending market by removing the legal obstacle that had temporarily halted implementation of the regulations, which seek to protect borrowers from abusive lending practices, data privacy breaches and unethical loan recovery methods.

Justice A.L. Allagoa, in his judgment in Suit No. FHC/L/CS/760/2026, dismissed the 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 regulations.

The court upheld the validity of the DEON Regulations, ruled that they were issued within the Commission’s constitutional and statutory powers, and discharged the interim order that had restrained the FCCPC from implementing the framework.

Following the ruling, the FCCPC announced the immediate resumption of implementation and enforcement of the regulations across the digital lending ecosystem.

According to the Commission, the judgment represents a significant legal victory for consumer protection and reinforces its mandate to regulate digital, electronic, online and other non-traditional consumer lending services in Nigeria.

The Commission noted that the legal challenge had compelled it to suspend enforcement in April 2026 in compliance with a court order, stressing that the suspension demonstrated its commitment to the rule of law and judicial process.

Commenting on the judgment, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the Commission would immediately resume enforcement of the regulations.

“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive.

“Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law,” he said.

The DEON Regulations, introduced on July 21, 2025, require digital lenders, loan applications and online credit providers to register with the FCCPC and comply with standards covering consumer protection, responsible lending, ethical debt recovery, transparent loan terms and data privacy.

Operators were initially granted a 90-day compliance window, with penalties for violations including fines of up to N100 million or one per cent of annual turnover, suspension or revocation of approvals, and possible disqualification of company directors.

Industry observers believe the court ruling will strengthen oversight of Nigeria’s rapidly expanding digital lending market, which has witnessed a proliferation of online loan platforms in recent years, many of which have faced accusations of harassment, illegal data disclosure and abusive debt collection practices.

The judgment also represents the second major court victory secured by the FCCPC this month.

Earlier, another Federal High Court upheld the Commission’s authority to investigate consumer complaints relating to Air Peace’s ticket pricing, ruling that the FCCPC’s investigative powers do not amount to price regulation.

The latest ruling is expected to reinforce regulatory confidence and provide greater legal certainty for consumer protection enforcement across Nigeria’s digital financial services sector.