By Abbas Nazil
The Federal Competition and Consumer Protection Commission has intensified enforcement actions against companies violating Nigeria’s digital lending rules, according to the Executive Vice Chairman, Mr Tunji Bello.
Mr Bello said the move was necessary to curb widespread abuses within the digital lending space and to protect Nigerian consumers from unethical practices.
He explained that several loan operators continue to function without proper registration or approval as required under the Digital Lending Rules.
According to Mr Bello, such unlawful operations expose consumers to harassment, intimidation and illegal debt recovery methods.
He stated that the commission has received numerous complaints from citizens regarding privacy violations and misuse of personal data by some digital lenders.
Mr Bello noted that these practices contradict the core objectives of the Digital Lending Rules introduced by the FCCPC.
He said the rules were designed to ensure transparency, fairness and accountability among digital lenders operating through mobile applications and online platforms.
Mr Bello emphasized that all digital lenders must be registered with the commission before offering loan services in Nigeria.
He added that compliance includes submission of required documentation and adherence to consumer protection standards.
According to him, both local and foreign-owned lending platforms fall under the same regulatory obligations.
Mr Bello disclosed that the commission has commenced investigations into several companies suspected of breaching the rules.
He said enforcement measures would include sanctions, administrative penalties and prosecution where necessary.
Mr Bello warned that operators engaging in threats, public shaming or defamatory practices would not be spared.
He stressed that unauthorized access to borrowers’ contact lists and personal information remains illegal under Nigerian law.
According to Mr Bello, innovation in financial technology must not undermine consumer rights.
He said the FCCPC supports financial inclusion but insists it must be achieved responsibly.
Mr Bello explained that digital lending can contribute positively to the economy only when conducted within legal and ethical boundaries.
He revealed that the commission is collaborating with other regulatory agencies to identify illegal lending platforms.
Mr Bello added that steps are also being taken to remove unregistered loan applications from digital marketplaces.
He urged digital platform operators to cooperate with regulators in enforcing compliance.
According to him, the ongoing crackdown is not targeted at legitimate businesses.
Mr Bello clarified that compliant lenders have nothing to fear from the enforcement exercise.
He encouraged industry players to review their operations and align fully with the Digital Lending Rules.
Mr Bello stated that the commission remains open to engagement with stakeholders seeking clarity on compliance requirements.
He also advised Nigerians to verify the registration status of loan apps before borrowing.
According to him, consumers should be wary of lenders requesting excessive access to their mobile devices.
Mr Bello urged the public to report illegal lending activities to the commission.
He said consumer vigilance plays an important role in strengthening regulation.
Mr Bello reaffirmed the FCCPC’s commitment to protecting consumers across all sectors of the economy.
He noted that monitoring of the digital lending market will be continuous.
According to Mr Bello, enforcement of the rules is essential to restore confidence in the digital credit system.
He concluded that the commission will not hesitate to act against any company undermining Nigeria’s consumer protection laws.