Nigerian Court Affirms FCCPC Authority to Regulate Digital Lending

The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations, 2025. The move follows a ruling by Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos, who dismissed a lawsuit filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN).

WASPAN had challenged the commission's authority to regulate the digital lending sector, specifically arguing that airtime and data credit services fell exclusively under the mandate of the Nigerian Communications Commission (NCC). This legal challenge had previously resulted in an interim ex parte order in April 2026, which forced the FCCPC to temporarily suspend the regulations. Justice Lewis-Allagoa ruled that the FCCPC's mandate for consumer protection is economy-wide and complementary to the NCC's technical and licensing roles.

By upholding the validity of the DEON Regulations, the court allows the FCCPC to oversee an industry estimated at 400 billion naira. The regulations are designed to curb exploitative lending practices, promote responsible lending, and enhance consumer protection in Nigeria's digital lending market. FCCPC Director of Corporate Affairs Ondaje Ijagwu stated that the commission will continue to discharge its statutory responsibilities to ensure innovation and financial inclusion thrive within a transparent regulatory framework.