Court ruling clears way as FCCPC resumes enforcement of digital lending rules

THE Federal Competition and Consumer Protection Commission (FCCPC) has restarted the enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON), after a federal high court upheld the legal framework.

The commission announced the development in a statement issued on Monday, saying the court’s decision removed the legal barrier that had forced it to suspend implementation earlier this year.

The DEON Regulations, introduced in September 2025 under the Federal Competition and Consumer Protection Act, 2018, established rules governing digital lenders, including registration requirements, consumer protection standards, data privacy safeguards, transparent lending practices and ethical debt recovery procedures.

The FCCPC had given digital lending operators until January 5, 2026, to fully comply with the regulations after announcing the deadline in November 2025.

Enforcement, however, was put on hold in April 2026 after the Wireless Application Service Providers Association of Nigeria (WASPAN) secured an interim order from the court questioning the commission’s authority to implement the regulations pending the determination of the suit.

That legal challenge has now been resolved. According to the FCCPC, Justice A.L. Allagoa of the Federal High Court Lagos dismissed WASPAN’s claims in their entirety, ruling that the regulations were issued within the commission’s constitutional and statutory powers. The court also discharged the interim order that had restrained enforcement.

The commission said the judgment restores the full implementation of the DEON Regulations, making them immediately enforceable.

Commenting on the verdict, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the commission had suspended enforcement in April out of respect for the court process and its commitment to the rule of law.

He noted that the commission would now continue enforcing the regulations in line with the court’s ruling, adding that the framework is intended to promote responsible lending, improve accountability in Nigeria’s digital credit market, curb unfair lending practices and provide stronger protection for consumers.

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