BIC Advisory

Menu
Free Business Health Check

About the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025

 

The Digital, Electronic, Online, or Non-Traditional (DEON) Consumer Lending Regulations, 2025 were issued pursuant to Section 163 of the Federal Competition and Consumer Protection Act, 2018 and are administered by the Federal Competition and Consumer Protection Commission (FCCPC). These Regulations are designed to strengthen consumer protection and ensure fair competition within Nigeria’s rapidly expanding digital and non-traditional lending space.

They establish standards, guidelines, and compliance requirements for undertakings, collaborators, affiliates, and partners that provide digital lending services. Importantly, they do not replace existing obligations under other laws or regulators but operate in addition to them. Compliance with these Regulations does not exempt any entity from adhering to other applicable laws.

Key Applicability

These Regulations apply to a wide range of entities and activities, including:

  • Digital Money Lenders (DMLs) – fintech companies and online platforms providing unsecured loans through apps, websites, or USSD channels
  • Mobile Money Operators (MMOs) – providers extending credit in the form of airtime or data advances
  • Vendors, service providers, partners, or collaborators – third parties facilitating or benefiting from consumer lending transactions
  • Cashback or service-based lenders – businesses providing goods/services in exchange for repayment obligations
  • Consumer lending partners in regulated industries – telecommunications, insurance, utilities with overlapping lending services
  • Cross-border or interstate digital lenders – businesses operating in Nigeria physically or electronically
  • Microfinance Banks (MFBs) – licensed by the Central Bank of Nigeria (CBN) and offering consumer loans. They are required to apply for a waiver, but must still submit registration forms and documentation under these Regulations.
Primary Objectives
  • Protect and promote consumer interests through fair, transparent, and safe lending practices
  • Provide redress mechanisms against exploitative, misleading, or unconscionable lending practices
  • Ensure product safety and service integrity for goods and services tied to lending transactions
  • Reduce consumer risks and injuries through restrictions, prohibitions, or corrective measures
  • Promote compliance with local and international standards for quality and consumer-friendly service delivery
Section
Title
Regulatory Description
Compliance Obligation
Risk Description
Controls

s.7

Witnesses and evidence

Every undertaking involved in the provision of Consumer Lending Services as a Lender/Service Provider or other ancillary support prior to the commencement of these Regulations shall, where eligible, apply to, and receive the Commission’s approval to continue to offer such services or engage in the conduct that is subject of these Regulations no later than 90 (ninety) days from the commencement of these Regulations.

The Lender/Service Provider shall apply for and obtain the Commission’s approval within 90 days of the commencement of these Regulations in order to continue offering consumer lending or ancillary services.

Failure to obtain approval within 90 days may lead to prohibition from operating, regulatory penalties, and reputational damage.

  • Maintain regulatory compliance calendar with key deadlines (90-day timer)
  • Appoint the CCO to monitor approval status and escalate delays
  • Submit and retain documented evidence of application and
  • Commission response
    Monthly compliance reporting to EXCO until approval is secured

s.8

Where any undertaking participating in, or intends to participate in Consumer Lending, Services specifically including, but not limited to entering any agreement, contract, joint venture, or other mutual understanding for the purpose of providing lending, vendor or ancillary, related, associated or subsidiary services, engages in services that are otherwise subject of regulation by any other regulator, such undertaking shall be prohibited from entering such agreement, joint venture, partnership or understanding unless the undertaking has a valid, subsisting, unexpired or otherwise restricted permit, licence or approval of the relevant regulator for the purpose of carrying on such activities or services.

The Lender/Service Provider shall ensure that it and any counterparty hold valid, subsisting and unexpired permits, licences, or approvals from the relevant regulator before entering into any agreement, contract, joint venture, or partnership in relation to consumer lending.

Entering agreements without valid permits may render them unlawful, attract fines/sanctions, or cause reputational harm.

  • Pre-contract due diligence checklist to verify licences/permits of counterparties
  • Require certified true copies of permits before signing agreements
  • Insert contractual clauses requiring counterparties to maintain valid licences
  • Annual vendor compliance attestations

s.9

If such licence, approval or permit expires, becomes restricted or invalidated after entering into the relevant subject agreement under these Regulations, the agreement, contract or understanding shall be subject to termination without further cause within five (5) days of the finality of such encumbrance on the undertaking’s privilege or ability to carry on the relevant business or services. For undertakings under this provision of these Regulations who are domiciled in Nigeria, they shall also be duly registered with the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act, 2020 or any extant statute regulating registration of corporations in Nigeria.

TheLender/Service Provider shall monitor licences and terminate any agreement, contract, or understanding within 5 days if a required licence, approval, or permit is expired, restricted, or invalidated. The Bank shall also ensure that it is duly registered with the Corporate Affairs Commission (CAC) under CAMA 2020 or any extant law.

Continuing operations with invalid licences or without CAC registration could lead to sanctions, contract nullification, or reputational harm.

  • Maintain central licence register with expiry alerts
  • Establish 5-day termination playbook with Legal/Procurement
  • Include contractual notification clauses requiring counterparties to report licence changes within 24 hours
  • Annual CAC verification of registration and returns

s.10

Power to Approve Consumer Lending Partnerships

No undertaking shall partner with another undertaking for the purpose of providing Consumer Lending Services unless such undertaking has entered a contract that has been presented as part of any application to the Commission, and the same has been expressly approved by the Commission under the provisions of these Regulations.

The Lender/Service Provider shall ensure that any partnership agreement for Consumer Lending Services is first documented in a contract, included in an application to the Commission, and expressly approved by the Commission before implementation.

Entering into partnerships without Commission approval may result in regulatory breach, invalid agreements, sanctions, and reputational damage.

  • All partnership agreements routed through Legal & Compliance review
  • Maintain a Commission approval tracker for partnerships
  • Keep evidence of submission and approval on file
  • Board/EXCO oversight of all strategic partnerships

s.11

Where a person or undertaking operating in a Regulated Industry intends to, or does collaborate in any manner whatsoever including but not limited to joint ventures, fee sharing arrangements, partnership, joint operation, service provision or vendor understanding, strategic alliance or any product or service licencing that is predicate on receiving a portion of revenue generated by any activity that is the subject of these Regulations, with another person or undertaking not licenced or regulated by the regulator in that Regulated Industry, such collaboration is prohibited unless subject to a mutual consumer lending or other service level agreement which shall form part of an application to the Commission for approval in accordance with provisions of these Regulations. Every Regulated Undertaking and a Lender/Service Provider desirous of collaborating with respect to the provision of Consumer Lending Services (whether as a joint venture, strategic alliance, partnership or otherwise) shall enter a “Consumer Lending Services Agreement” and shall jointly apply to the Commission for the Commission’s approval, in accordance with the provisions of the Act and these Regulations

The Lender/Service Provider shall not collaborate with unlicensed or unregulated undertakings in Consumer Lending unless there is a formal Consumer Lending Services Agreement, submitted as part of a joint application to the Commission for approval. The Bank shall ensure all collaborations, whether joint ventures, partnerships, or revenue-sharing arrangements, receive prior approval from the Commission.

Collaborations without Commission approval, or with unlicensed/unregulated partners, may lead to regulatory sanctions, prohibition of activities, invalid agreements, and reputational harm.

  • Conduct licence checks of counterparties prior to collaboration
  • Require a formal Consumer Lending Services Agreement for all collaborations
  • Joint applications with partners must be logged and tracked by Compliance
  • Contracts to include termination rights if approval is not obtained

s.12

Requirements for Registration of Consumer Lending Services

Any undertaking desirous of providing Consumer Lending Services either by way of cash, cashback services, barter in exchange for specific or verifiable monetary value regardless of how value or interest component is derived shall submit the following to the Commission for approval — (a) an agreed Consumer Lending Services Agreement and such other addendum or ancillary Agreements thereto; (b) an application in any approved form, or containing all information required under these Regulations; (c) completed Forms in Schedule 1 and 2; (d) evidence of payment of applicable fees; (e) a copy of the license duly issued by the Sector Regulator (where applicable); (f) Certificate of incorporation, CAC Status Report or Memorandum and Articles of Association of the applicant(s); (g) a detailed list and profile of members of the Board of Directors and key management personnel of the applicant(s); (h) list of the shareholders of the applicant[s], including detailed information of the ultimate beneficiaries or beneficial owners of any interests in the applicant(s); (i) evidence of the proposed Lender’s financial capacity … (j) standard terms and conditions … (k) additional documents as stated in Schedule 3 … and (l) such other documents or details as the Commission may request from time to time. … All applicants shall obtain the prior approval of the Commission before consummating and/or implementing any Consumer Lending Services Agreement. All modifications, amendments, assignment, subcontract or novation … shall be subject to the prior approval of the Commission.

The Lender/Service Provider shall submit a Consumer Lending Services Agreement, prescribed forms, fees, corporate and shareholder documents, evidence of financial capacity, and any additional documents required, and obtain prior approval of the Commission before commencing or modifying Consumer Lending Services.Details of what shall be submitted are as follows:

a. An executed Consumer Lending Services Agreement and any addenda/ancillary agreements;

b. A formal application in the prescribed format or with all required information;

c. Completed Forms in Schedule 1 and 2;

d. Evidence of payment of prescribed fees;

e. A valid copy of the license issued by the relevant Sector Regulator (if applicable);

f. Certificate of Incorporation, CAC Status Report, or Memorandum & Articles of Association;

g. A detailed list and profile of Board of Directors and key management personnel;

h. A list of shareholders, including details of ultimate beneficial owners;

i. Evidence of financial capacity to finance the services, such as:

  • audited financial statements for the last 3 fiscal years (or less, if newly established),
  • proof of financial backing from third-party financiers (where applicable), or
  • other supporting documents demonstrating source of funds and capacity;

j. Standard terms and conditions for the Consumer Lending Contract;

k. Any additional documents required under Schedule 3;

l. Any further documents or details as may be requested by the Commission.

Failure to register properly or obtain prior approval exposes the Bank to rejection of applications, inability to operate, sanctions, or reputational damage.

  • Application pack checklist aligned with Regulation 12
  • Use document management system for storing forms, agreements, and evidence
  • Compliance Officer to review completeness before submission
  • Internal pre-approval gate: no service launch without Commission’s written approval

s.13

Minimum Requirements for a Consumer Lending Services Agreement

13.—(1) The Consumer Lending Services Agreement referred to in Regulation 11 above shall at the minimum contain the following — (a) names and office address of the contracting Parties; (b) obligations of each of the Lending Partner particularly technical and financial Partners; (c) nature of the Consumer Lending Services; (d) rights of consumers/borrowers against the respective Parties to the Agreement; (e) interest rates; (f ) allocation of risk among collaborators or Partners; (g) requirement for insurance or indemnity of the lenders’ liability under the Agreement; (h) default recovery/enforcement methods or modalities; (i) data protection compliance; (j) competition law and consumer protection provisions; (k) applicable fees and charges; and (l) Dispute resolution. (2) The Consumer Lending Services Agreement may be demonstrably fair and reflective of the obligations and responsibilities of each party thereto. If the Consumer Lending Services Agreement is determined by the Commission to be anticompetitive or unfair (without any acceptable justification), the Commission shall reject the application and deny approval until such time as the agreement is modified to the satisfaction of the Commission. (3) The Commission may deny an application for approval if any amendment to a Consumer Services Lending Agreement or may deny approval or prohibit or terminate an agreement pursuant to Section 18(3)(a) of the Act.”

The Lender/Service Provider shall ensure every Consumer Lending Services Agreement includes all mandatory provisions , is fair and not misleading, and is acceptable to the Commission. The mandatory provisions are as follows:

  1. Names and office addresses of all contracting parties.
  2. Obligations of each lending partner, particularly technical and financial partners.
  3. The nature of the Consumer Lending Services to be provided.
  4. Rights of consumers/borrowers against the respective parties to the Agreement.
  5. Applicable interest rates.
  6. Allocation of risk among collaborators or partners.
  7. Requirements for insurance or indemnity covering the lender’s liability under the Agreement.
  8. Default recovery and enforcement methods/modalities.
  9. Provisions for compliance with data protection laws.
  10. Provisions for compliance with competition law and consumer protection.
  11. Applicable fees and charges.
  12. A dispute resolution mechanism.

Agreements lacking any mandatory element or considered unfair/anticompetitive may be rejected, denied approval, or terminated—creating operational and reputational exposure.

  • Develop a standard agreement template with all required clauses
  • Legal/Compliance review of all agreements before submission
  • Maintain a repository of all submitted agreements along with any feedback from the FCCPC.
  • Periodically update the standard template to incorporate any new regulatory expectations or recurring FCCPC comments

s.14

Procedure and Timeline for Approval

14.—(1) An application for approval of a Consumer Lending Services Agreement and/or Consumer Lending Services registration shall be submitted to the Commission using the prescribed Form in Schedule 1 and accompanied by the supporting documents in Regulation 12.5. above, as well as the documents listed in Schedule 3 of these Regulations, where applicable. (2) The Commission may review the application documents and request additional information or clarification, where required. (3) The Commission may upon assessment of the application documents communicate its approval to the applicants. (4) The timeline for review, assessment and issuance of approval or otherwise will be thirty (30) days from submission of all application documents. Where required, the Commission may extend the foregoing timeline as it may deem fit. (5) Where the subject or direct proceeds of the Consumer Lending Service will not be a precise or specific amount of cash money to be directly disbursed to the beneficiary’s account, or directly paid to a third party for the purpose of a purchase, or another repayment, the application shall include a different and independent letter to the Commission identifying the specific subject, product, service or lending transaction, or how the lending is done, and were the exposure, liability or obligation to repay is in same, or similar service, thing or subject, or in cash money. Where the same is in cash money, the letter will explain how the expected or anticipated cash repayment together with any intended interest are an equivalent of the subject, good, service or thing that was the subject or purpose of the lending. (6) No business associated with, or for the operation/purpose of transactions or lending described in 13.5 above shall commence, approved or be operated without a specific and independent approval response to the letter under 13.5 from the Commission. (7) Where a business already or otherwise approved by the Commission intends to expand to, or commence business that is defined under, or subject to 13.5 above, such business or operations shall not commence until the business has conveyed the letter under 13.5 to the Commission and received approval under 13.6 above.

The Lender/Service Provider shall submit applications with prescribed forms and required documents, respond promptly to Commission requests, and obtain approval before commencing any service, including special approval for non-cash lending arrangements.

Incomplete filings or missing special approvals for non-cash lending structures can delay or block approval, disrupting business plans.

  • Application checklist covering forms, schedules, and supporting docs
  • Regulatory liaison officer to track and follow up with Commission
  • Escalation procedure if Commission’s response is delayed
  • Prepare and submit a separate independent letter to the Commission for non-cash lending structures (airtime/data advances, BNPL goods, subscription services, hybrid repayments).

s.15

Application and Approval Fees

15.—(1) An applicant shall, at the time of making its application, pay a non-refundable application fee in the sum of One Hundred Thousand Naira only (N100,000.00) or such other amount as prescribed by the Commission from time to time by the issuance of a Guideline under Section 163 of the Act. (2) Upon communication to the applicant(s) of the Commission’s approval, the applicants shall — (a) in the case of an applicant operating as a Mobile Money Operator (MMO) and offers consumer lending in the form of airtime and data advances, pay a nonrefundable Approval fee of in the sum of One Million Naira only (N1,000,000.00) or such other amount as the Commission may determine from time to time by the issuance of a Guideline under Section 163 of the Act. (b) in the case of an applicant operating as a Digital Money Lender (DML), pay a nonrefundable Approval Fee of in the sum of One Million Naira only (N1,000,000.00) or such other amount as the Commission shall determine from time to time by the issuance of a Guideline under Section 163 of the Act. Applicants in this category shall be entitled to the initial registration of two (2) apps. Applicants desirous of registering additional apps shall pay an additional registration fee of Five Hundred Thousand only (N500,000.00) for each additional app. Applicants are allowed to register a maximum of five (5) apps only.

The Lender/Service Provider shall pay the prescribed non-refundable application fee and approval fees, in line with MMO/DML categories, and comply with app registration limits set by the Commission.

Non-payment or exceeding app limits can cause rejection or denial of approval, with operational/financial consequences.

  • Finance/Compliance coordination to ensure fees are budgeted and paid
  • Maintain evidence of payment receipts
  • Establish a fee-tracking schedule for application and renewals
  • System control to restrict app launches beyond the 5-app limit

s.16

Revocation and Renewal

16. —(1) The Commission may revoke its approval with respect to a Consumer Lending Services Agreement and/or Consumer Lending Services, consequent upon which the Consumer Lending Services Agreement and/or Consumer Lending Services shall be immediately terminated. (2) The Commission’s approval may be revoked on any of the following grounds or other legitimate grounds under these Regulations — (a) where the information submitted by either the Regulated Undertaking or the Lender/Service Provider prior to the issuance of the Commission’s approval was false or misleading; (b) where any Party to the Consumer Lending Services Agreement violates the provisions of these Regulations, the Act or any Sector Regulations. (c) where, in the reasonable opinion of the Commission, the Regulated Undertaking or the Lender/Service Provider engaged in conducts that are against the interests of Consumers or prohibited under the Act, or subject to a judicial or quasi-judicial determination questioning the integrity or transparency of the Party; (3) An approval issued by the Commission in accordance with these Regulations shall expire on 31st December of the third calendar year from the issuance date and shall be renewed no later than 31st March of the subsequent year from the third calendar year anniversary. Thereafter, the approval shall be renewable every thirtysix (36) calendar months from the date of the first renewal, subject to the payment of the prescribed annual levy in the sum of Five Hundred Thousand Naira only (N500,000.00), or such other amount as may be determined by the Commission; compliance with any directives that may be issued by the Commission; and satisfactory performance of the undertaking, as determined by the Commission. (4) Any undertaking’s approval that is not renewed after the expiration of the timeline shall be deemed to have expired.

The Lender/Service Provider shall renew approvals every three years (by 31 March following expiry), pay the renewal levy, comply with Commission directives, maintain satisfactory performance, and avoid any breaches that could trigger revocation.

Failure to renew approvals or submitting false/misleading information may result in revocation or expiry, termination of services, regulatory sanctions, reputational damage, and financial loss.

  • Maintain an approval/renewal calendar with reminders at 6, 3, and 1 month before expiry
  • Implement a robust compliance monitoring program
  • Compliance to conduct pre-renewal self-assessment
  • Maintain senior management and Board oversight (e.g., quarterly reports on compliance with FCCPC directives, status of any investigations, etc.)
  • Implement incident reporting system to avoid regulatory breaches

s.17

Disclosure and Transparency

To promote transparency and enhance disclosure practices in the provision of the Consumer Lending Services, the Lender/Service Provider shall ensure the following — (a) that the terms of the Lending Service provided to the Consumer (including interest rates, repayment terms, and any associated fees ) are fully disclosed to consumers before any transaction is completed, and that such terms are made available to the consumers in clear, legible and simple English Language comprehensible to the average consumer, and in such manner that shall not be misleading or deceptive; (b) conspicuously display on its website and other platforms, accurate and up to date information, including information on the lending rates, and such other costs and associated charges for the use of the Consumer Lending Services; (c) prior to and immediately upon procuring the use of, or on accessing the Consumer Lending Services, the Lender/Service Provider shall notify the consumer on the specific terms and conditions for use of the Services. This shall include the immediate delivery, digitally or otherwise, of the contracting terms between the consumer and the Service Provider, including information on the nature of the transaction, the cost and rates for same and such other information which is reasonably sufficient to enable the consumer to make an informed decision. (d) ensure that the Lender/Service Provider’s websites, applications, platforms or other information dissemination channels are functional and regularly updated with the current features of products and services offered; (e) the content of advertisements shall be factual and unambiguous, expressed in clear and simple language and shall not be offensive, misleading, deceptive, injurious, or exaggerate the benefits of the products or services being advertised and shall comply with the provisions of the Act, relevant Sectors Regulations on advertisements/disclosures and any other prevailing law with respect to advertisements. (f ) with respect to unsolicited advertisement, and or marketing efforts, all Service Providers shall comply with applicable laws and restrictions including the Act, Nigerian Data Protection Act 2023, Nigerian Communications Act 2003, including regulations or guidance made or provided thereunder and any other relevant prevailing law; which provisions shall include, but not be limited to privacy, respect for the prerogative of consumers regarding any selected or desired preferences on receiving unsolicited marketing or advertisement materials, and where none exists, a simple, clear and efficient option to unsubscribe or decline continued interactions for the purpose of marketing or advertisement.

The Lender/Service Provider shall clearly disclose all loan terms (interest, fees, repayment), display accurate and current information on all platforms, notify consumers of contract terms before and upon service use, keep platforms updated, ensure ads are factual and non-misleading, and comply with laws on unsolicited marketing while providing an opt-out.

Inadequate disclosure or misleading ads can trigger consumer complaints, regulatory sanctions, legal liability, and reputational damage.

  • Use Standard loan disclosure templates approved by Legal/Compliance to include all required information (interest rate, APR, tenor, fees, total payable, etc.) in plain language
  • Ensure the company’s website and mobile app always display current interest rates, fees, and product features prominently
  • Adopt an advertising and communications policy that explicitly forbids misleading claims and exaggerations. Train marketing and sales staff on this policy and on legal requirements
  • For any marketing messages (SMS blasts, emails, calls), integrate compliance with Do-Not-Disturb (DND) lists and consent requirements per the Nigerian Data Protection Act 2023 and Nigerian Communications Commission rules.
  • Implement a process where customers must review and accept the terms and conditions (with all pricing and key terms disclosed) before loan disbursement.

s.18

Fair Treatment of Consumers

The Lenders/Service Providers shall comply with the following provisions to ensure fair treatment of consumers — (a) treat each and every consumer equitably and fairly without discrimination, exploitation or bias. Therefore, Lender/Service Provider shall — (i) ensure that variations to contracts (and in any case, terms and conditions) including interest rate, fees or charges are only made if expressly provided for in the terms and conditions of the Consumer Lending Contract/Agreement; (ii) not act in any manner that is inconsistent with or contrary to the terms and conditions of the Consumer Lending Contract/Agreement; (iii) respond to consumer enquiries and complaints in accordance with the provisions of these Regulations and the Sector Regulations; (b) A Consumer Lending Contract/Agreement shall not contain unfair terms contrary to Section 127 of the Act. In addition to the provision of section 127 of the Act, a Consumer Lending Contract/Agreement shall be deemed to contain unfair term where there is an imbalance in rights and obligations which are detrimental to the consumer. Without limiting the generality of these Regulations 17(b), a contract term is considered unfair if it — (i) eliminates or limits the liability of a Lender/Service Provider to loss caused to a consumer by misrepresentation, negligence or misleading information on its products or services; (ii) binds a consumer to an obligation while the corresponding obligation on the Lender/Service Provider is conditional; (iii) terminates a contract or alters its clauses without reasonable notice to the consumer; (iv) gives the Lender/Service Provider the possibility of transferring its rights and obligations under the Consumer Lending Contract/Agreement, where this may reduce the rights of the consumers, without their consent; (v) allows unilateral change to a Consumer Lending Contract without stating the circumstances under which the change could be made; and (vi) purport to waive any protection provided by a law, regulations or guidelines to a consumer.

The Lender/Service Provider shall treat all consumers fairly, only vary contract terms if expressly allowed, honour contract commitments, respond to enquiries/complaints, and ensure agreements do not contain unfair terms that disadvantage consumers or remove legal protections.

Unfair terms or discriminatory practices may lead to contract invalidity, regulatory penalties, legal action, and reputational harm.

  • Establish a Fair Treatment of Customers policy that prohibits discrimination (on any basis such as gender, ethnicity, etc.) and ensures consistent, respectful treatment for all borrowers
  • Pre-contract approval process to screen for unfair terms
  • Set up complaint response SLAs with tracking and escalation

s.19

Responsible Business Conduct

To promote good business practices the Lender/Service Provider shall — (a) conduct their business in a responsible, professional and ethical manner; (b) provide clear information about the services, features, terms and conditions and the applicable fees and charges; (c) provide and inform consumers of the channels to make enquiries and complaints and shall place on its website and/or platform a consumer complaint channel including but not limited to telephone numbers and email addresses; (d) notify consumers of circumstances or situations that may affect the terms of their contract or relationships with the Lender/Service Provider; (e) not impose any of the Consumer Lending Services on the consumers, including through incessant, excessively targeted advertisement; (f ) not charge fees for issuance and renewal of products and Services which have not been requested by the consumer; (g) not compel consumers to use the Consumer Lending Services as a condition for the purchase or use of other services offered by the Regulated Undertaking or the Lender/Service Provider unless where the Services are directly dependent; (h) ensure that credit advances shall be provided on an opt-in basis only. Consumers shall actively request and consent to the use and utilisation of the Services; automatic or pre-authorized lending is strictly prohibited; (i) before granting credit to a consumer, profile or assess the capability to repay in a sustainable manner by engaging in proper credit assessment of the consumer and carrying out a due diligence and credit worthiness of the consumer; (j) notify a consumer where the loan requests are declined, varied or amended; (k) not carry out marketing of the Services in an unethical and unprofessional manner.

The Lender/Service Provider shall operate responsibly, disclose service terms and fees, provide complaint channels, notify consumers of changes, avoid imposing services or unrequested fees, ensure lending is opt-in only, conduct proper credit assessments, notify consumers of declined/changed loans, and market ethically.

Unethical practices, failure to assess repayment capacity, or imposing services can result in consumer harm, regulatory sanctions, and reputational damage.

  • Adopt a robust Code of Conduct that includes specific commitments to ethical lending and fair marketing
  • Publish dedicated customer service contact details (toll-free phone numbers, support email, chat, etc.) on the website, app, and in loan documentation
  • Opt-in mechanism for lending (no pre-authorised credit)
  • Establish process fornotifying customers, if a loan request is declined or the terms are varied from what was requested
  • Implement controls to ensure no fees are charged for services the consumer did not request i.e No Forced Bundling or Unrequested Fees

s.20

Parties to Consumer Lending Services Agreements

Parties to the Consumer Lending Services Agreement shall ensure the following — (a) conduct of regular audits and implementation of stringent security measures to safeguard consumer data and transaction integrity; (b) development of robust plans and mechanisms to handle operational disruptions and glitches, ensuring continuous service delivery under all circumstances; (c) continuous innovation and improvement of the Services following technological advancements and consumers’ feedback, with a view to maintaining market competitiveness and adapting to market needs.

The Lender/Service Provider shall ensure that all parties to Consumer Lending Agreements conduct regular audits, safeguard consumer data, implement robust business continuity plans, and continuously innovate services to reflect technology and consumer needs.

Failure to audit, protect data, or maintain continuity could lead to consumer harm, data breaches, operational breakdowns, regulatory penalties, and loss of competitiveness.

  • Conduct Annual internal/external audits covering IT security and data protection
  • Implement strong Information security controls (encryption, access controls, penetration testing)
  • Develop a comprehensive Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) for the consumer lending operations
  • Establish consumer feedback loop feeding into product improvement

s.21

Data Protection and Privacy

To ensure data protection and privacy of consumers, the Lender/ Service Provider shall comply with the following provisions-(a) the Lender/Service Provider shall comply with the requirements of the Nigeria Data Protection Act, 2023 and any subsidiary enactment thereunder and any other applicable Sector Regulations on data protection, privacy and cybersecurity; (b) every consumer shall be entitled to request and obtain a statement containing a statement or history of utilisation of the Services within 24 (twenty-four) hours from the consumer’s demand from the relevant Lender/ Service Provider.

The Lender/Service Provider shall comply with the NDPA 2023 and all relevant data protection, privacy, and cybersecurity laws. The Lender/Service Provider shall also provide consumers, within 24 hours of request, a statement or history of their service usage.

Non-compliance with NDPA or failure to provide timely service usage statements may lead to regulatory penalties, loss of consumer trust, litigation, data breaches, and reputational damage.

  • Appoint a Data Protection Officer (DPO)
  • Develop and implement a data protection and cybersecurity policy
  • Maintain a consumer data access system to generate usage statements within 24 hours
  • Conduct annual data protection audits
  • Train staff on NDPA 2023 compliance

s.22

Complaints Handling and Redress

The resolution of disputes shall be the responsibility of the Lender/Service Provider in a Regulated Industry and by the Commission in cases where there is no applicable Sector Regulator. Consumer complaints shall be lodged with the Service Provider for timely resolution. In this regard, the Lender/Service Provider shall — (a) develop documented processes on complaints handling that guarantees fairness, transparency, responsiveness and independence of the complaint handling mechanism; (b) allocate adequate resources for complaints handling and resolution; (c) at all consumer service points, disclose channels and contact details for lodging complaints, timeframe for resolution and options for escalation. Where it is not practicable to comply with this, refer consumers to where the information required could be obtained; (d) ensure that consumer complaints are addressed and resolved within 24 (twenty-four) hours from the receipt of such complaints. Where impracticable, the Lender/Service Provider shall communicate the timeframe for the resolution of such complaint, which shall not in any case exceed 48 (forty-eight) hours from the receipt of the consumer’s complaints.

The Lender/Service Provider shall establish a fair, transparent, and independent complaint-handling mechanism, allocate adequate resources, disclose complaint channels and timelines, and resolve complaints within 24 hours (or 48 hours if unavoidable).

Poor complaint handling exposes the Bank to consumer dissatisfaction, regulatory penalties, reputational harm, and possible escalation to the FCCPC.

  • Adopt a complaint handling policy and SOP
  • Design the internal workflow such that most routine complaints (balance discrepancies, minor app issues, etc.) can be resolved within 24 hours by front-line staff
  • Provide multiple easy channels for lodging complaints: phone line, email, in-app chat or form, and physical branches (if applicable).
  • Allocate dedicated complaint-handling staff
  • Implement a complaint management system or register to log every complaint, track its status, and timestamp each action
  • Submit regular complaint resolution reports to management and regulator

s.23

Service Charges and Interest Rate Monitoring

The Commission shall periodically monitor interest rate for services of consumer lending, and ensure rates are not exploitative and inimical to consumer interest. Such monitoring shall be made in compliance with provisions of Guidelines developed pursuant to Section 163 of the Act.

The Lender/Service Provider shall ensure its charges and interest rates are fair, transparent, and not exploitative, and shall comply with any monitoring and guidelines from the Commission.

Charging excessive or exploitative rates may trigger regulatory intervention, penalties, consumer complaints, and reputational damage.

  • Maintain a pricing and interest rate policy
  • Conduct quarterly benchmarking of rates against industry
  • Internal audit review of all charges
  • Submit reports to Commission as required
  • Publish charges and rates for consumer transparency

s.24

Competition Obligations in Consumer Lending

All Regulated Undertakings involved specifically in lending airtime and data to consumer, shall not later than 60 (sixty) days from the commencement of these Regulations, ensure that it has at least 2 (two) intermediaries and/or service providers for service activation, one of whom shall be a fully owned local service provider. (2) Where any Regulated Undertaking or Lender/Service Provider is in breach of regulation 23. above, the Regulated Undertaking shall be liable to a fine under the Commission’s Administrative Penalties Regulations, 2020. (a) The Regulated Undertaking on one hand and the Lender/Service Provider shall comply with the Act, the Restrictive Agreement Regulations, 2022, the Abuse of Dominance Regulations, 2022 and the Sector Regulations on competition law. Particularly, the Regulated Undertaking shall not apply dissimilar terms and conditions in dealing with Lenders/Service Providers to give any Party an undue competitive advantage. (b) The Regulated Undertaking shall not without the prior written consent of the Commission enter into a Consumer Lending Services Agreement with a Service Provider or any other intermediary which holds a dominant position in the relevant market. The dominance or otherwise … shall be determined in accordance with the applicable Sector Regulation or the Abuse of Dominance Regulations … (c) The Regulated Undertakings and the Lenders/Service Providers shall comply with competition laws and principles including those contained in the Act and the Sector Regulations and shall adhere to the highest standards of fairness, transparency, and accountability. (d) Subject to Sections 60 and 72(3) of the Act, the Regulated Undertaking and the Lender/Service Provider shall not engage in any exclusionary or anticompetitive practices and exclusivity arrangements (explicit, implicit or de facto).

The Lender/Service Provider shall maintain at least two intermediaries for airtime/data lending (including one local), comply with competition laws, avoid giving undue advantage, not contract with dominant players without Commission consent, and not engage in anti-competitive or exclusivity practices.

Breach of competition rules could result in administrative fines, invalid agreements, loss of consumer trust, and reputational damage.

  • Develop Vendor diversification policy ensuring minimum of 2 intermediaries (incl. 1 local)
  • Conduct Pre-contract competition law compliance review
  • Obtain Commission consent before engaging dominant players
  • Include fair-dealing clauses in all contracts
  • Conduct Annual competition/antitrust training for staff

s.25

Reporting Requirements

The Lender and the Lender/Service Provider shall — (a) maintain accurate records of all consumer lending transactions, consumer interactions, and complaints (and resolutions to same). (b) submit biannual reports to the Commission detailing their operations, including the number of consumer lending transactions, total transaction value, interest and fees collected, and any consumer complaints received and their resolution. Provided that the Regulated Undertaking and/or Lender/Service Providers shall upon request provide the Commission with the relevant documents and information; (c) where required or directed by the Commission or any Sector Regulator, and in accordance with the Nigerian Data Protection Act, 2023 and any subsidiary Regulations, furnish all service data relating to the use of the Services by consumers to recognised credit bureaus; (d) promptly report any breaches of these Regulations, consumer complaints that result in legal action, or any other significant operational issues to the Commission or Sector Regulator (where required). (2) The Regulated Undertakings and the Lenders/Service Providers shall file annual returns and reports of its lending activities … not later than 31st March … The annual returns and report shall include … transaction volumes and values … summary of complaints and disputes … financial statements … Such records shall be preserved … for five (5) years … (3) … records … shall be made readily available to the Commission within 48 (forty-eight) hours from the receipt of an official demand … (4) No other undertaking … shall provide Consumer Lending Services within Nigeria … in the case of a digital lender, the Lender must be duly registered and licensed by the Commission.

The Lender/Service Provider shall maintain accurate records of all lending activities and complaints, submit biannual and annual reports by 31st March, preserve records for at least 5 years, provide information to credit bureaus and the Commission when required, promptly report breaches or disputes, and ensure registration/licensing with the Commission.

Failure to report accurately or timely may result in sanctions, loss of licence, reputational damage, and regulatory penalties.

  • Set calendar reminders for submission of the biannual and annual report deadlines
  • Update the company’s document retention policy to reflect that all records related to lending activities, complaints, and required reports must be kept for at least 5 years.
  • Establish process to respond to Commission requests (48-hour turnaround)
  • Establish an internal trigger system to identify and escalate any incidents that might qualify as reportable to regulators

s.26

Dispute Resolution Mechanism

26.—(1) Consumers affected by violations of these Regulations shall have the right to seek redress through the Commission’s established complaint resolution mechanisms. (2) Consumers may report any dispute or complaints in relation to the service to lenderstaskforce@fccpc.gov.ng or such other complaint resolution window on the Commission’s website.

The Lender/Service Provider shall cooperate fully with the Commission’s complaint resolution mechanisms and ensure consumers are aware of official channels (including the FCCPC’s lenderstaskforce@fccpc.gov.ng email and Commission website).

Failure to engage in proper dispute resolution exposes the Bank to escalated consumer disputes, enforcement action, and reputational risk.

  • Display FCCPC complaint channels on all platforms and disclosures
  • Ensure internal complaint-handling SOPs integrate escalation to FCCPC
  • Train customer service teams on escalation pathways
  • Maintain logs of all disputes escalated to Commission