On 20 July 2026, the Federal High Court sitting in Lagos affirmed the legality of the Federal Competition and Consumer Protection Commission’s (“FCCPC”) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (“DEON Regulations”) and thereby dismissed the Wireless Application Service Providers Association of Nigeria (WASPAN)’s suit challenging it.
The DEON Regulations establish clear rules of conduct for digital lenders and provide borrowers with stronger legal protections against unfair lending and debt collection practices. They also reinforce that borrowers remain responsible for repaying legitimate loans in accordance with their agreed terms.
In its judgment, the Court upheld the FCCPC’s statutory authority to regulate digital lending in Nigeria, including airtime and data credit services. The decision dissolved the April 2026 court orders that had blocked enforcement of the DEON Regulations, allowing the FCCPC to fully resume its enforcement and imposition of consumer protection penalties.
What this means for loan apps
Digital lenders remain obliged to strictly comply with the FCCPC’s regulatory framework. Practices such as harassment, intimidation, public shaming, unauthorized disclosure of borrowers’ personal information, and other unfair debt recovery methods are prohibited. Non-compliant loan apps face regulatory sanctions, enforcement actions, and potential civil liability.
What this means for borrowers
Borrowers continue to enjoy legal protection against abusive debt collection practices. The DEON Regulations introduce more robust compliance and enforcement mechanisms to ensure those protections are effectively upheld. If a loan app violates the DEON Regulations, for example, by unlawfully sharing personal data or engaging in any unfair collection practices, affected consumers can report to the FCCPC for investigation and enforcement. Aggrieved borrowers may also seek compensation through the courts.
It is important to note that the judgment does not automatically mean that every offending loan app must pay a minimum of ₦20 million in damages to the affected borrowers. Damages generally depend on the specific facts of each case and may be awarded by a court or arise from other lawful enforcement mechanisms. Borrowers should therefore document any misconduct and follow the FCCPC’s appropriate complaint procedures.
Source: https://fccpc.gov.ng/fccpc-resumes-digital-lending-regulation/