FCCPC Digital Lending Regulations in Nigeria: Full Guide (2022 – 2025)

FCCPC Digital Lending Regulations Nigeria 2022

In 2022, the Federal Competition and Consumer Protection Commission (FCCPC) rolled out new digital lending regulations
to tackle the rising cases of harassment, privacy violations, and unethical practices by loan apps operating in Nigeria.
The Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending required
all lending platforms to register with the FCCPC and comply with data protection, fair lending, and transparency rules.

These regulations mandated loan companies to disclose interest rates, repayment schedules, terms and conditions,
and customer rights before disbursement. It also empowered FCCPC to sanction, suspend, or ban loan apps
that engaged in harassment or data misuse.

Nigeria Digital Lending Interest Rate Regulation

Interest rates charged by digital lenders in Nigeria have been a major concern.
Under FCCPC regulations, lenders must clearly disclose their Annual Percentage Rate (APR),
including processing fees and penalties, so borrowers can make informed decisions.

While there is currently no fixed cap on interest rates, exploitative practices can be reported
to FCCPC. The Central Bank of Nigeria (CBN) and FCCPC are collaborating to develop frameworks
that will limit excessive interest charges and promote consumer-friendly credit systems.

Which Loan Apps are Registered under FCCPC?

To protect Nigerians, FCCPC published a list of approved and registered digital lenders.
Registered loan apps must comply with the regulatory framework and are considered safe for consumers.

Some FCCPC-registered loan apps include:

• Carbon (One Finance)
• FairMoney Microfinance Bank
• Branch International
• Renmoney
• PalmCredit
• Okash (Blue Ridge Microfinance Bank)

Borrowers are strongly advised to use only FCCPC-approved loan apps to avoid fraud and harassment.

FCCPC Act Explained

The FCCPC Act (Federal Competition and Consumer Protection Act of 2018)
established the FCCPC as Nigeria’s primary consumer protection and competition regulatory authority.
The act gives FCCPC the power to:

• Protect consumers from unfair, misleading, and deceptive practices.
• Regulate companies, including digital lenders, to ensure compliance with fair competition laws.
• Investigate complaints, sanction erring companies, and enforce penalties.
• Promote consumer education and fair market practices in Nigeria.

The Act serves as the legal foundation for digital lending regulations and other consumer-focused policies.

How to Report a Loan App to FCCPC in Nigeria

If you encounter harassment, data misuse, or unfair practices from a loan app,
you can file a complaint directly with the FCCPC through these channels:

1. Email: contact@fccpc.gov.ng
2. FCCPC Website: www.fccpc.gov.ng
3. WhatsApp Complaint Number: Often provided during regulatory updates.
4. Visit FCCPC Office: Submit a written complaint at their Abuja headquarters or zonal offices.

Complaints should include screenshots of harassment messages, loan details, and
evidence of the app’s misconduct for proper investigation.

Which Bank Issues New Guidelines on Digital Lending?

The Central Bank of Nigeria (CBN) works closely with the FCCPC to regulate digital lenders.
In addition, microfinance banks licensed by the CBN also provide frameworks for lending apps under their management.

For example, Blue Ridge Microfinance Bank oversees OKash, while FairMoney operates as a licensed microfinance bank.
These institutions must comply with CBN’s prudential guidelines, ensuring better protection for borrowers.

Which Loan Apps are Banned by the Nigerian Government?

FCCPC has banned or delisted several loan apps for harassment, defamation, and data privacy breaches.
Some of the banned loan apps include:

• Soko Loan
• EasyCredit
• GoCash
• GetCash
• LCredit

Borrowers should avoid unregistered and blacklisted apps to prevent exploitation.

Which Loan App is Linked to Opay?

The loan service directly linked to Opay is called Okash,
which operates under Blue Ridge Microfinance Bank.
Through the Opay super app, users can access Okash loans and other financial services.

Since Okash is registered with FCCPC, borrowers can use it safely, provided they comply with repayment terms.

How to Check if a Loan App is Registered

To confirm whether a loan app is registered under FCCPC:

1. Visit the official FCCPC website.
2. Check the published list of approved loan apps.
3. Verify the app’s registration details, microfinance bank partnership, and compliance with regulations.
4. Avoid apps that operate only via APK downloads and not through official app stores, as they are often fraudulent.

Borrowing from unregistered apps exposes you to harassment, data theft, and illegal interest rates.

Nigerians must always check whether a loan app is FCCPC-registered before borrowing,
report misconduct, and understand their rights under the FCCPC Act.
With ongoing reforms, the digital lending ecosystem is gradually shifting towards responsible, fair, and secure lending.