The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the enforcement of Nigeria’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, following a Federal High Court judgment that upheld the legality of the regulatory framework and lifted an earlier order halting its implementation.
The decision clears the way for the Commission to continue overseeing digital lending operators across the country after months of legal uncertainty. The case, filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), challenged the FCCPC’s authority to issue and enforce the regulations governing digital lending businesses.
The Federal High Court in Lagos dismissed the suit in its entirety, ruling that the regulations were validly made within the FCCPC’s statutory and constitutional powers. Brandspur Banking News Desk reports that the court also rejected all reliefs sought by the claimant and discharged the interim order that had temporarily stopped the Commission from implementing the rules.
The Commission said it had suspended enforcement immediately after receiving the court’s interim directive in April 2026, describing the move as a demonstration of its commitment to the rule of law and respect for judicial authority. With the restraining order now vacated, the FCCPC confirmed that the regulations are once again fully operational and enforceable.
Reacting to the judgment, the Commission said the ruling reinforces its legal mandate to regulate Nigeria’s digital lending market and protect consumers from unfair business practices. It added that it would continue carrying out its responsibilities in line with the law and the court’s decision.
According to the FCCPC, the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations were introduced to strengthen oversight of digital lenders, promote responsible lending standards, improve accountability within the sector, and enhance consumer protection.
The Commission also stated that the framework is intended to support innovation and financial inclusion while ensuring operators comply with transparent and fair business practices that build confidence among consumers, investors and legitimate market participants.
The ruling is expected to have immediate implications for digital lending companies operating in Nigeria, as compliance with the FCCPC’s regulatory requirements is now fully enforceable following the court’s affirmation of the Commission’s powers.
Nigeria’s digital lending industry has expanded rapidly in recent years, prompting regulators to introduce stricter measures aimed at tackling abusive loan recovery methods, protecting borrowers’ personal data, and improving operational standards across the sector. The latest judgment is expected to provide greater regulatory certainty for both operators and consumers.
