Nigeria Tightens Digital Lending Rules with Heavy Penalties

Nigeria cracks down on digital lending with tough new penalties

In Nigeria, digital lending has become close to what many would consider a trend. According to a report from Business Day in October 2024, digital lending in Nigeria surged by 80% from the previous year, with personal loans hitting ₦7.5 trillion.When a sector grows this big, this fast, it’s almost inevitable that some players will cut corners, and in digital lending, that’s often meant predatory interest rates, misleading ads, and even debt coll…

10 key points on Nigeria's new FCCPC digital lending regulations

Nigeria’s financial landscape has a fresh regulation from the Federal Competition and Consumer Protection Commission (FCCPC) called the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, effective July 25, 2025. The digital lending market is valued at $2.1 billion and serves millions. So, amid rising defaults and economic pressures, these rules aim to tame predatory practices while boosting accountability. We, at…