Court Upholds FCCPC’s Powers, Clears Way for Digital Lending Regulations

The Federal High Court in Lagos has affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to regulate Nigeria’s digital lending industry, dismissing a suit that challenged the Commission’s powers,This clears the way for the enforcement of the FCCPC’s Digital, Electronic, Online or Non Traditional Consumer Lending Regulations, 2025 (DEON Regulations). The Commission in […]

The Federal High Court in Lagos has affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to regulate Nigeria’s digital lending industry, dismissing a suit that challenged the Commission’s powers,

This clears the way for the enforcement of the FCCPC’s Digital, Electronic, Online or Non Traditional Consumer Lending Regulations, 2025 (DEON Regulations).

The Commission in a statement said the judgment, delivered on Monday by Justice A.L. Allagoa in Suit No. FHC/L/CS/760/2026, marks a significant legal victory for the consumer protection regulator and removes the legal hurdle that had temporarily stalled implementation of the regulations.

Following the ruling, the FCCPC announced that implementation and enforcement of the DEON Regulations have resumed with immediate effect.

What the FCCPC is saying

According to the Commission, the suit was filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN), which challenged the FCCPC’s authority to issue and enforce the digital lending regulations.

However, the court dismissed the plaintiff’s Originating Summons in its entirety and declined all the reliefs sought.

The FCCPC said the court held that the DEON Regulations were made pursuant to its statutory and constitutional powers, making them valid and enforceable.

The court also upheld the specific provisions of the regulations challenged in the suit and discharged an interim ex parte order that had restrained the Commission from implementing and enforcing the rules.

• “The legal impediment that had necessitated the Commission’s temporary suspension of implementation and enforcement of the Regulations has been removed, and the Regulations are once again fully operational and enforceable,” the FCCPC said.

Backstory

The FCCPC introduced the DEON Regulations on July 21, 2025, which required all digital lenders, including loan apps and online credit providers, to register with the FCCPC and meet clear standards on consumer protection, data privacy, ethical loan terms, and responsible lending.

Operators were originally given a 90‑day compliance window, with sanctions for non‑compliance that include fines of up to N100 million or 1% of turnover, and possible disqualification of directors; and other enforcement actions such as suspension or revocation of approval.

WASPAN had challenged the FCCPC’s authority to issue and implement the DEON Regulations.

Following an interim order issued by the court in April 2026, the FCCPC suspended implementation of the regulations in compliance with the court’s directive.

According to the Commission, the suspension reflected its commitment to the rule of law and respect for judicial authority while awaiting the court’s final determination.

FCCPC resumes enforcement

With the court now ruling in its favour, the FCCPC said it has resumed full implementation of the regulations governing digital, electronic, online and other non-traditional consumer lending services.

Commenting on the judgment, the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, said the ruling validates the Commission’s regulatory mandate.

• “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.
• “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,” he said.

What you should know

The latest ruling comes as the second favourable court decision secured by the FCCPC over its regulatory authority.

Earlier this month, Nairametrics reported that a Federal High Court had ruled that the FCCPC has the statutory authority to investigate consumer complaints relating to Air Peace’s ticket pricing.

The court held that the FCCPC’s power to investigate pricing complaints is separate from its authority to regulate prices, clarifying that requesting information from an airline during an investigation does not amount to imposing price controls.