NIGERIA: Regulatory Crackdowns against Loan Apps

Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) introduced the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (commonly known as the "DEON Regulations" or "Deon Consumer Lending Regulations") as part of efforts to strengthen oversight of Nigeria's rapidly expanding digital lending and fintech ecosystem .

Key Provisions (Disputed)

The framework was designed to address:

• Consumer protection concerns
• Data privacy issues
• Unregulated lending practices in the digital lending sector

It imposes requirements including mandatory registration, compliance with consumer protection standards, and penalties for violations .

Key Actions Taken

Blacklist and Approvals

As of January 2026, the FCCPC had:

• Granted full approval to 457 lenders
• Granted conditional approval to 35 operators
• Placed 103 lenders on a watchlist facing potential enforcement
• Officially blacklisted at least 45 illegal loan apps

Enforcement Actions

The FCCPC conducted office raids on multiple loan app operators and secured delisting of illegal apps from Google Play Store.

Recent Legal Challenge

On April 14, 2026, the Federal High Court sitting in Lagos granted an interim injunction restraining the FCCPC from enforcing parts of its DEON Regulations pending the determination of a substantive application .

The Plaintiffs

The Wireless Application Service Providers Association of Nigeria (WASPA Nigeria) challenged the legality and implementation of the regulations, arguing they would adversely affect members operating within Nigeria's digital and online consumer lending ecosystem .

Provisions Restrained

The court restrained enforcement of specific paragraphs including 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32 of the regulations. The FCCPC was also barred from imposing sanctions, penalties, or fines on WASPA members or interfering with their operations .

Current Status

The matter was adjourned to April 27, 2026, for hearing of the substantive application. The interim injunction represents a significant temporary setback for the FCCPC's enforcement efforts .