FCCPC Resumes Enforcement Of Digital Lending Regulations After Court Ruling

The Federal Competition and Consumer Protection Commission (FCCPC) has resumed enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), after a Federal High Court in Lagos upheld the agency’s authority to regulate Nigeria’s fast-growing digital lending industry.

Justice A.L. Allagoa, in a judgment delivered on Monday in Suit No. FHC/L/CS/760/2026, dismissed in its entirety a suit filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN), which had challenged the Commission’s powers to issue and implement the regulations.

The court declined all the reliefs sought by the plaintiff and held that the DEON Regulations were made pursuant to the FCCPC’s statutory and constitutional powers, ruling that the Commission acted intra vires—within the authority conferred on it by law.

Justice Allagoa also upheld the validity of the specific provisions of the regulations challenged in the suit and discharged the interim ex parte order that had restrained the Commission from implementing and enforcing the rules pending the determination of the case.

The judgment effectively removes the legal barrier that forced the FCCPC to suspend implementation of the regulations in April, clearing the way for the framework to become fully operational once again.

“The legal impediment that had necessitated the Commission’s temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable,” the Commission said in a statement issued on Monday.

WASPAN had questioned the FCCPC’s legal authority to regulate digital, electronic, online and other non-traditional consumer lending activities through the DEON Regulations.

Following service of the court’s interim order in April 2026, the Commission said it immediately suspended implementation and enforcement of the regulations in full compliance with the court’s directive, describing the decision as consistent with its commitment to the rule of law and respect for judicial authority.

Welcoming Monday’s judgment, the FCCPC said the ruling reinforces its statutory mandate to oversee Nigeria’s digital consumer lending market and strengthens its efforts to promote responsible lending practices.

Director of Corporate Affairs at the Commission, Ondaje Ijagwu, said the agency had consistently demonstrated respect for judicial processes throughout the litigation.

“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive,” Ijagwu said.

“Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.”

According to him, the DEON Regulations are designed to establish a more transparent and accountable regulatory framework for Nigeria’s digital lending industry by promoting responsible lending, strengthening regulatory oversight, curbing unfair and exploitative practices, and enhancing consumer protection.

Ijagwu said the Commission’s objective is to ensure that innovation and financial inclusion continue to grow within a regulatory environment that is transparent, fair and accountable while inspiring confidence among consumers, investors and responsible operators.

“The DEON Regulations are designed to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market. Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike,” he said.

The DEON Regulations form part of the FCCPC’s broader efforts to regulate Nigeria’s expanding digital lending ecosystem, which has witnessed rapid growth alongside increasing consumer complaints over unethical debt recovery methods, privacy violations and other unfair lending practices.

Monday’s ruling restores the Commission’s full authority to implement and enforce the regulations, ending months of legal uncertainty over the framework’s validity.