FCCPC Resumes Enforcement of Digital Lending Regulations After Court Victory

LAGOS, Nigeria — The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations) following a Federal High Court judgment affirming the validity of the regulations.

The commission announced the development in a statement issued on Monday by its Director of Corporate Affairs, Ondaje Ijagwu, following the judgment delivered by Justice A.L. Allagoa of the Federal High Court in Lagos.

According to the FCCPC, the ruling removed the legal obstacle that had prompted the commission to suspend enforcement of the regulations earlier this year.

Court Upholds FCCPC’s Regulatory Powers

The judgment was delivered in Suit No. FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN).

The FCCPC said the court dismissed the originating summons filed by WASPAN in its entirety and rejected all the reliefs sought by the association.

The commission added that the court upheld the validity of the DEON Regulations, ruling that they were made within the FCCPC’s statutory and constitutional powers.

The court also upheld the specific provisions of the regulations challenged by the plaintiff and discharged the interim ex parte order that had restrained their implementation and enforcement.

“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 FCCPC said.

Enforcement Resumes After Temporary Suspension

The commission explained that it suspended implementation of the regulations in April 2026 after being served with an interim court order restraining enforcement.

According to the FCCPC, the decision to halt implementation reflected its commitment to the rule of law and respect for judicial authority.

With Monday’s judgment discharging the interim order, the commission said enforcement of the regulations has now resumed.

FCCPC Says Regulations Promote Responsible Lending

Commenting on the judgment, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the commission had always maintained that effective regulation must be grounded in the rule of law.

“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,” he 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.”

Ijagwu stressed that the regulations are not intended to stifle innovation or restrict access to financial services but to ensure digital lending operates within a transparent and accountable regulatory framework.

According to him, the rules 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 added.

Judgment Strengthens Oversight of Digital Lending Sector

The court’s decision marks a significant milestone in the Federal Government’s efforts to strengthen oversight of Nigeria’s rapidly growing digital lending industry, which has expanded considerably through mobile applications and other online lending platforms.

The DEON Regulations establish standards for digital, electronic and other non-traditional consumer lending businesses, while addressing concerns over unfair lending practices, consumer exploitation and regulatory accountability.

With enforcement now reinstated, digital lenders and other operators covered by the regulations are expected to face renewed regulatory scrutiny as the FCCPC seeks to ensure compliance and enhance consumer protection across the sector.

Also read: SERAP Urges National Assembly to Withdraw Data Protection Amendment Bill, Threatens Legal Action

admin

A Lagos-based journalist with a passion for disseminating factual information and a deep appreciation for good music, good food, movies, and beautiful cars. He hopes to travel the world someday, documenting its beauty and diverse cultures through his storytelling.