Court Halts Digital Lending Rules, Grants Injunction Against FCCPC

Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos has temporarily blocked the enforcement of certain provisions of the new Digital, Electronic, Online, and Non-Traditional Consumer Lending Regulations, 2025.

Justice Lewis-Allagoa granted this interim relief after entertaining an ex parte motion from the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), which challenged the legality and enforcement of the regulations.

WASPA Nigeria filed the motion on 14 April 2026, seeking to halt key provisions of the “Deon Consumer Lending Regulations.”

The court after reviewing submissions from applicant lawyers Kemi Pinheiro (SAN), found that the association’s case merits interim protection pending further consideration.

WASPA Nigeria had argued that the regulations negatively impact its members, who operate in Nigeria’s digital lending sector.

They requested the court to prevent the FCCPC from enforcing or acting on certain provisions, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32, and from imposing fines or directives affecting their operations.

Justice Lewis-Allagoa, after reviewing an affidavit from Ayo Stuffman, granted the temporary injunction, preventing the FCCPC from enforcing those parts of the regulations or taking actions that would hinder WASPA members’ service delivery.

The court also barred sanctions or directives based on alleged non-compliance and ordered a hearing for 27 April 2026 to resolve the larger case.

This ruling is a setback for the FCCPC, which introduced the regulations to enhance oversight over Nigeria’s growing digital lending and fintech sectors, aiming to improve consumer protection, privacy, and control unregulated practices.

Critics express concerns about how the regulations may limit innovation, increase compliance costs, and restrict operational freedom.

The upcoming hearing will determine whether the temporary restraining order remains in place or is lifted in favour of a full case resolution.