Federal Competition and Consumer Protection Commission. Photo: FCCPC
FCCPC has won its court case and would resume digital lending regulations enforcement following victory.
The Federal Competition and Consumer Protection Commission has resumed the implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, following a Federal High Court judgment upholding the validity of the regulations.
The commission said the judgment, delivered on Monday by Justice A.L. Allagoa of the Federal High Court, Lagos, effectively removed the legal obstacle that had forced it to suspend the implementation of the regulations.
The judgment was delivered in Suit No. FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte.
In a statement issued on Monday, the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the court dismissed the originating summons filed by WASPAN in its entirety and rejected all the reliefs sought by the association.
The court, according to the commission, also upheld the validity of the DEON Regulations, ruling that the regulations were made within the FCCPC’s statutory and constitutional powers.
The court further upheld the specific provisions of the regulations challenged by the plaintiff and discharged the interim ex parte order that had restrained the implementation and enforcement of the rules.
The statement partly read, “The Federal Competition and Consumer Protection Commission has resumed implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).”
With the interim order discharged and the regulations upheld, the FCCPC said the DEON Regulations were once again fully operational and enforceable.
“The legal impediment that had necessitated the Commission’s temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable,” the commission stated.
The development marks a fresh phase in the Federal Government’s effort to strengthen oversight of Nigeria’s rapidly expanding digital lending industry, which has grown significantly with the spread of mobile applications and other online lending platforms.
The regulations are designed to establish clearer standards for digital, electronic and other non-traditional consumer lending businesses while addressing concerns around unfair lending practices, consumer exploitation and weak regulatory accountability.
The FCCPC said the regulations had been challenged by WASPAN, which questioned the commission’s authority to issue and implement them.
Following the service of an interim court order in April 2026, the commission said it immediately suspended the implementation and enforcement of the regulations in full compliance with the court’s directive.
The commission said the decision was consistent with its commitment to the rule of law and respect for judicial authority.
Welcoming Monday’s judgment, Ijagwu said the FCCPC had always maintained that effective regulation must be anchored on the rule of law.
“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive,” he said.
“Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.”
The FCCPC director said the regulations were not intended to stifle innovation or limit access to financial services but to ensure that digital lending operated within a fair and transparent regulatory environment.
“The DEON Regulations are designed to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market,” Ijagwu said.
“Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike.”
The FCCPC’s resumption of enforcement is expected to place digital lenders and other operators covered by the regulations under renewed regulatory scrutiny.
The commission’s position is that the growth of digital lending must be matched by stronger safeguards for consumers, particularly as the sector continues to expand beyond traditional banking channels.
Monday’s ruling therefore provides the FCCPC with a legal basis to proceed with the enforcement of the 2025 regulations while reinforcing the commission’s authority to regulate emerging consumer markets within its statutory mandate.
