Court stops FCCPC from enforcing 2025 digital lending rules

A federal high court in Lagos has temporarily blocked the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing parts of its 2025 digital lending regulations, after they were challenged by an industry group.

Justice Ambrose Lewis-Allagoa granted the order on Tuesday, April 14, after the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria) filed an urgent application asking the court to intervene.

The association, which represents companies operating in Nigeria’s digital lending space, argued that certain provisions of the regulations would negatively affect its members and needed to be challenged in court.

The Digital, Electronic, Online, and Non-Traditional (DEON) Consumer Lending Regulations were officially published and became effective in July 2025. The FCCPC designed these rules as a complete system to ensure fairness and transparency in digital lending. They address various aspects, including lender registration, loan recovery practices, customer data management, and clear disclosure of loan terms.

The commission set January 5, 2026, as the deadline for full compliance.

WASPA Nigeria requested the court to prevent the FCCPC from enforcing specific sections of its regulations, namely paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32. Additionally, WASPA sought to restrain the FCCPC from imposing fines, sanctions, or directives on its members during the legal proceedings.

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After reviewing arguments presented by the association’s lead counsel, Kemi Pinheiro, Justice Lewis-Allagoa decided there was sufficient basis to provide temporary protection while the court fully examines the case.

What the court has now barred for the FCCPC

The judge has ordered that the FCCPC cannot enforce or take action on the disputed parts of the regulations until the court makes a decision on the main issue.

The FCCPC is also not allowed to prevent WASPA members from continuing their operations, nor can it penalise them for not following the regulations being challenged. Additionally, the FCCPC cannot issue any new orders or instructions to put the disputed regulations into effect.

The case has been postponed until April 27. At that time, the court will hold a more detailed hearing to decide whether to extend the temporary order into a longer injunction while the lawsuit is ongoing.

The FCCPC regulations aim to solve ongoing issues in Nigeria’s expanding digital loan industry. These issues include hidden fees, harsh debt collection methods, and improper use of borrowers’ private information. The court’s decision in the upcoming case will determine if these regulations will be fully enforced.