In Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has implemented regulations to combat harassment, data breaches, and other unethical practices.
The FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, who quoted Tunji Bello as the commission’s executive vice chairman/chief executive officer, as introducing the new framework in Abuja on Wednesday, disclosed this in a statement.
“Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders for too long.”
The CEO noted that “innovation is welcome, but not at the expense of the rights and dignity of consumers or the rule of law,” and that these regulations are clear.
Bello continued, “The regulations provide the legal tools to prosecute violators and promote responsible digital finance. No consumer should be hounded, demonized, or conned into a lifelong debt by using fraudulent online banking.
READ ALSO: NIMC and INEC Partner – Identity Management
The 2025 Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), which was announced on July 21, 2018, took effect, according to the statement.
The regulations, which were created in accordance with Federal Competition and Consumer Protection Act Sections 17, 18, and 163, establish a comprehensive framework to protect consumers in Nigeria’s rapidly expanding digital credit market.
Within 90 days of opening, all digital lenders must register with the FCCPC, with approval contingent on meeting requirements for transparency, data compliance, and consumer protection, as required by the provisions.
Operators who don’t comply with the rules could face fines of up to $100 million, or 1% of turnover, as well as directors’ suspension for up to five years.
The regulations require local ownership of at least one service provider for airtime and data lending services, and prohibit pre-authorised or automatic lending. They also outlaw unethical marketing.
Additionally, they restrict monopolistic agreements and require lender partnerships to be registered jointly without prior FCCPC approval.
The Commission urged all digital money lenders (DMLs), mobile money operators (MMOs), and service partners to obtain application forms, guidelines, and compliance requirements.
Source: Channels TV
Leave a Reply