FCCPC Sets January 2026 Deadline for Full Digital Lending Compliance in Nigeria
The Federal Competition and Consumer Protection Commission (FCCPC) has officially set a hard deadline of January 5, 2026, for all digital lenders to achieve full compliance with its new regulatory framework, signaling a major shift towards a more structured and consumer-centric financial technology landscape.
A Push for Market Integrity and Consumer Protection
According to a notice from the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 are designed to instill fairness, transparency, and accountability in Nigeria’s rapidly expanding digital lending market. The regulations represent a critical effort to curb predatory practices that have plagued the sector, including unethical debt collection and opaque lending terms.
The Executive Vice Chairman of the Commission, Tunji Bello, was quoted emphasizing that full compliance is not merely a legal formality but a fundamental requirement for protecting consumers while enabling responsible growth. “Operators have had ample time to adjust to the regulations and the additional guidance now provided. We expect all obligations to be met before the deadline,” Bello stated.
Enforcement and Consequences for Non-Compliance
The FCCPC has made it clear that enforcement actions will commence immediately after the January 2026 deadline expires. Entities that fail to meet the compliance standards may face severe sanctions. These potential penalties include restrictions from operating, suspension of partnerships with financial and technology service providers, and other legal penalties permitted under the FCCPA.
This firm stance underscores the regulator’s commitment to cleaning up the sector and building lasting consumer trust. The move is expected to separate serious, legitimate operators from those engaging in harmful business practices.
Guidance for a Smoother Transition
Recognizing the need for clarity, the Commission has issued an additional guidance instrument under Sections 17 and 163 of the FCCPA. This document is intended to provide practical steps for lenders and intermediaries to achieve compliance. It outlines the necessary documentation and introduces updated application forms (Forms 1 and 3) that have been refined based on feedback from industry stakeholders.
This supportive measure indicates a regulatory approach that combines firm enforcement with a willingness to guide operators through the transition, aiming for a stable and well-regulated digital lending ecosystem by 2026.
This report is based on information originally published by the Daily Nigerian.