The Federal Competition and Consumer Protection Commission (FCCPC) has significantly expanded its regulatory net over Nigeria’s digital lending landscape, granting full approval to an additional 48 loan application companies. This move brings the total number of fully licensed digital lending entities operating in the country to 505, a substantial increase from the 457 fully approved as of January 2026. These companies are now mandated to adhere strictly to FCCPC regulations, including ethical debt recovery protocols, a critical development for legal and compliance professionals navigating this sector.
According to the Commission’s latest update, all entities previously operating under conditional approval have now either secured full accreditation or have been removed from that provisional status. This rigorous vetting process underscores the FCCPC’s commitment to sanitising the digital lending market and protecting consumers from predatory practices. The Commission has consistently issued stern warnings against the harassment, intimidation, and threats frequently employed by some loan operators, highlighting the evolving enforcement priorities for businesses in this space.
Beyond the 505 fully approved lenders, the FCCPC has also extended registration waivers to 32 digital lending companies already holding licenses from the Central Bank of Nigeria (CBN). Given that many of these entities operate multiple loan applications, the total number of loan apps under the FCCPC’s purview now exceeds 1,000. This expansive oversight is a direct consequence of the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, which mandates registration for all digital lenders. Industry observers note this regulatory push as a key driver for the sector’s formalisation and growth.
The FCCPC’s intensified oversight also includes a watchlist of 112 loan apps and the removal of 54 apps from the Google Play Store for contravening regulatory guidelines. While the surge in registered lenders signals a maturing consumer credit market, concerns are being raised regarding the FCCPC’s capacity to effectively supervise such a large and dynamic ecosystem. Adewale Adeoye, a Lagos-based financial analyst, posits that monitoring over 500 registered lenders, in addition to an unknown number of illegal operators, could strain the Commission’s enforcement resources. He further points out that the 2025 regulations extend oversight to lenders operating outside mobile app platforms, adding another layer of complexity to supervision.
Gbemi Adelekan, President of the Money Lenders Association (MLA), acknowledges the inherent challenges in regulating a rapidly expanding sector. However, he notes that the FCCPC has assured industry stakeholders of its capacity to manage the task and has demonstrated responsiveness to industry concerns. The current regulatory framework builds upon the FCCPC’s 2022 mandate, which established registration as a prerequisite for all digital money lenders in Nigeria.
Despite these regulatory advancements, reports of borrower harassment and defamation persist. Some lenders are reportedly circumventing sanctions by distributing their applications via Android Package Kit (APK) files, bypassing the Google Play Store. Under the 2025 regulations, non-compliant lenders face penalties of up to N100 million or 19 percent of their turnover, with directors potentially facing industry bans of up to five years. These stringent measures highlight the significant legal and financial risks associated with non-compliance for all stakeholders in the digital lending sector.
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