FCCPC Cracks Down on Unregistered Digital Money Lenders, Issues New Guidelines
The era of predatory digital lending in Nigeria is facing its most significant challenge yet as the FCCPC cracks down on unregistered digital money lenders following the expiration of a critical regulatory deadline. On Wednesday, January 21, 2026, the Federal Competition and Consumer Protection Commission (FCCPC) announced the commencement of a phased enforcement exercise targeting operators that failed to regularize their status under the new Digital, Electronic, Online, and Non-Traditional (DEON) Consumer Lending Regulations, 2025.
Executive Vice Chairman Tunji Bello confirmed that the commission has already begun delisting defaulting apps from its official register and is working with global tech giants to scrub these platforms from the digital ecosystem.
The crackdown follows the closure of the January 5, 2026, compliance window, which required all Digital Money Lenders (DMLs) to meet strict transparency and ethical standards. Central to these new guidelines is a total ban on the practice of “contact scraping” and “debt shaming.” Under the DEON framework, apps are strictly prohibited from accessing a borrower’s phone contacts, gallery, or private messages.
The FCCPC has emphasized that any lender found utilizing aggressive debt recovery tactics, such as sending defamatory messages to a borrower’s friends and family, will face immediate revocation of their operational status and potential criminal prosecution of their directors.
To ensure the effectiveness of the FCCPC cracks down on unregistered digital money lenders initiative, the commission has withdrawn the conditional approval status of several DML operators who failed to complete their documentation within the transitional period. These entities have been removed from the FCCPC’s published register, which serves as the primary guide for Nigerian consumers.
Furthermore, the commission has initiated structured engagements with hosting platforms like the Google Play Store and Apple App Store, as well as payment service providers, to freeze the settlement accounts and restrict the operational reach of non-compliant firms.
New Enforcement Benchmarks and Sanctions
The 2026 regulatory environment introduces heavy penalties designed to serve as a deterrent against unethical behavior:
- Administrative Fines: Non-compliant companies face fines of up to ₦100 million or 1% of their annual turnover, whichever is higher.
- Director Disqualification: Individuals overseeing offending firms can be disqualified from holding directorships in the financial sector for up to five years.
- April 2026 Deadline: For operators currently holding provisional eligibility, a final grace period has been set for April 2026 to achieve full registration or face total permanent bans.
The FCCPC’s move is a direct response to years of consumer complaints regarding exorbitant interest rates and privacy violations. By shifting from reactive “interim guidelines” to full enforcement under the DEON Regulations, the government aims to sanitize the $2.1 billion consumer lending sector.
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For the average Nigerian, this means a safer digital credit market where “convenience” no longer comes at the cost of “dignity.” Consumers are strongly advised to consult the official FCCPC register before engaging with any lending platform and to report any instances of harassment to the commission’s dedicated task force.