Lagos court halts FCCPC's digital lending regulations pending WASPA challenge
The Federal High Court in Lagos on Wednesday temporarily stopped the FCCPC from enforcing key provisions of the 2025 Digital Lending Regulations, granting WASPA Nigeria's request for an interim order. Judge Ambrose Lewis-Allagoa barred the commission from implementing paragraphs 3, 7, 10, 12-16, 24, 27, 29, and 32 of the regulations, which mandate licensing, interest rate caps, and transparent loan disclosures for digital lenders.
The regulations, effective since July 2025, were designed to curb predatory lending practices in Nigeria's fintech sector by requiring formal lender licensing, strict interest rate controls, and protections against data privacy violations and abusive debt recovery. WASPA challenged the rules, arguing FCCPC oversteps its authority by regulating telecommunications-related lending—a function they say belongs to the NCC under the 2003 Communications Act. The court had previously noted an April 16 compliance deadline with threatened sanctions for non-compliance.
Digital lenders currently operate without these consumer protections pending the April 27 hearing on WASPA's motion for interlocutory injunction. Borrowers should exercise heightened caution regarding loan terms, interest rates, and data privacy when using digital lending platforms until the legal matter resolves. The outcome will determine whether Nigeria maintains strengthened oversight of its rapidly growing digital credit market or returns to a less regulated environment.
Will you scrutinize digital loan offers more carefully for hidden rates or data usage clauses knowing current consumer protections are temporarily suspended, or wait for the April 27 court decision before engaging with lenders?