Court Upholds FCCPC’s Authority to Regulate Digital Lending, Lifts Restriction on New Rules
The Federal High Court in Lagos has affirmed the authority of the Federal Competition and Consumer Protection Commission (FCCPC) to regulate Nigeria’s digital lending sector, paving the way for the immediate implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
Justice A.L. Allagoa, in a judgment delivered on Monday, dismissed in its entirety a suit filed by the Wireless Application Service Providers Association of Nigeria Limited (WASPAN), which challenged the Commission’s powers to issue and enforce the regulations. The court held that the DEON Regulations were enacted within the FCCPC’s statutory and constitutional mandate and are therefore legally valid.
The court also upheld the provisions of the regulations challenged by the plaintiff and vacated the interim ex parte order that had temporarily restrained the Commission from implementing the rules. The ruling effectively removes the legal hurdle that forced the FCCPC to suspend enforcement of the regulations in April 2026 pending the determination of the suit.
Welcoming the judgment, the FCCPC said it would immediately resume implementation of the regulations. The Commission’s Director of Corporate Affairs, Ondaje Ijagwu, noted that the agency had complied with the earlier court order out of respect for the rule of law and remained committed to carrying out its statutory responsibilities professionally and within the confines of the law.
Ijagwu said the DEON Regulations were introduced to promote responsible lending, strengthen regulatory accountability, eliminate unfair and exploitative lending practices, and enhance consumer protection in Nigeria’s rapidly expanding digital lending industry. He added that the Commission would continue to ensure that innovation and financial inclusion thrive within a transparent, fair and accountable regulatory framework that benefits consumers, investors and responsible operators.
The judgment is expected to bolster the FCCPC’s efforts to tighten oversight of digital lending platforms, many of which have come under scrutiny over allegations of unethical debt recovery practices, invasion of borrowers’ privacy and other consumer rights violations.