Court Upholds FCCPC Authority, Reinstates Nigeria Digital Lending Rules
A Nigerian court has upheld the Federal Competition and Consumer Protection Commission's authority to regulate digital lending, clearing the way for its DEON regulations to be enforced. The ruling delivers major regulatory certainty for Nigeria's digital lending sector, though the court separately ruled that the FCCPC cannot license airtime providers, clarifying the boundaries of its jurisdiction.
Nigeria Lending Rules: the lawsuit that clarified where one regulator ends and another begins
Digital lenders in Nigeria now know the FCCPC — the country's consumer protection body — has the power to set the rules they operate by. Fines up to ₦100 million, director disqualifications, possible suspension. That was in doubt for months after a court froze enforcement in April.
But the judgment gave back with one hand and trimmed with the other. The FCCPC can regulate conduct; it cannot issue licences. Five airtime credit providers it approved earlier this year are now in a grey area, their authorisations potentially invalid.
For founders in digital lending, this is the rarest of things: a Nigerian court ruling that actually sharpens the picture rather than blurring it.
3 sources
- Court upholds FCCPC’s powers, clears way for digital lending regulations · nairametrics.com · T2
- Court rules FCCPC can regulate but cannot license airtime providers · businessday.ng · T2
- FCCPC’s DEON Regulations back in force following court ruling · thecondia.com · T2