Nigerian Court Blocks FCCPC From Enforcing Digital Lending Regulations

Gate News message, April 16 — A federal high court in Lagos temporarily halted the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing portions of its 2025 digital lending regulations on April 14, following a legal challenge by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria).

The DEON Consumer Lending Regulations, which became effective in July 2025, establish a comprehensive framework covering lender registration, loan recovery practices, customer data management, and loan term disclosure. The FCCPC set January 5, 2026, as the deadline for full compliance. WASPA Nigeria, representing companies in Nigeria’s digital lending sector, challenged specific provisions, arguing they would negatively impact its members.

Justice Ambrose Lewis-Allagoa granted a temporary restraining order preventing the FCCPC from enforcing or taking action on the disputed sections (paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32), from preventing WASPA members’ operations, or from imposing fines and sanctions during proceedings. The court also barred the FCCPC from issuing new directives to implement the contested regulations.

The case is scheduled for detailed hearing on April 27, where the court will determine whether to extend the temporary order into a longer injunction. The FCCPC designed the regulations to address issues in Nigeria’s digital lending industry, including hidden fees, aggressive debt collection, and misuse of borrower data.