The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement of its Digital, Electronic, Online, or Non-Traditional Consumer Lending (DEON) Regulations, 2025, following a Federal High Court judgment affirming its legal authority to regulate Nigeria’s digital lending industry.
The commission announced the development in a statement on Monday after Justice A.L. Allagoa of the Federal High Court in Lagos delivered judgment in Suit No. FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria Limited (WASPAN).
According to the FCCPC, the court dismissed the suit in its entirety, rejected all the reliefs sought by the plaintiff, and upheld the validity of the DEON Regulations, ruling that they were made within the commission’s constitutional and statutory powers.
The court also upheld the specific provisions of the regulations that had been challenged and vacated the interim ex parte order that had previously halted their implementation.
With the judgment, the commission said all legal barriers preventing enforcement of the regulations have been removed, making the framework fully operational once again.
The FCCPC recalled that it had suspended implementation of the regulations in April after the court issued an interim order pending the determination of the case.
Reacting to the ruling, the commission’s Director of Corporate Affairs, Ondaje Ijagwu, said the FCCPC remains committed to upholding the rule of law while carrying out its regulatory responsibilities.
He noted that the commission immediately complied with the court’s earlier directive by suspending enforcement and would now continue implementing the regulations following the court’s decision in its favour.
Ijagwu explained that the DEON Regulations were introduced to encourage responsible lending practices, improve regulatory oversight, protect consumers, and eliminate unfair and exploitative activities within Nigeria’s rapidly expanding digital lending sector.
He added that the framework is designed to ensure that innovation and financial inclusion flourish within a transparent, accountable, and consumer-friendly regulatory environment.
Nigeria’s digital lending industry has witnessed significant growth in recent years, providing millions of Nigerians with access to short-term loans through mobile applications and online platforms, particularly those without access to conventional banking services.
However, the sector has also faced criticism over unethical debt recovery methods, excessive charges, unauthorized access to borrowers’ personal information, and violations of consumer privacy.
To address these challenges, the FCCPC introduced a regulatory framework requiring digital lenders to register and comply with consumer protection standards. The commission has also sanctioned and delisted operators found guilty of violating these rules.
The court’s decision now clears the way for the FCCPC to fully enforce the DEON Regulations, strengthening oversight of digital lenders and enhancing consumer protection across Nigeria’s digital credit market.
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