A Federal High Court sitting in Lagos has issued an interim order restraining the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing key provisions of its 2025 digital lending regulations, pending the determination of a substantive suit challenging the framework.
The order was granted by Justice Ambrose Lewis-Allagoa following an ex parte application filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), which is contesting the legality of aspects of the regulations.
According to court filings, the suit questions whether certain provisions of the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 fall within the FCCPC’s statutory powers. The judge, after reviewing the application, directed that the commission should temporarily suspend enforcement actions tied to the disputed provisions until the case is fully heard.
The ruling effectively means that, for now, the FCCPC cannot impose penalties or take regulatory action against affected digital lending operators under the contested sections of the framework.
The 2025 regulations were introduced as part of broader efforts to sanitise Nigeria’s fast-growing digital lending ecosystem, particularly targeting abusive practices such as harassment, data privacy violations, and opaque loan terms. The rules require lenders—including fintech firms and loan app operators—to register with the FCCPC, meet strict disclosure standards, and comply with consumer protection guidelines.
Prior to the court’s intervention, the FCCPC had already begun enforcement measures against non-compliant operators, including removing erring platforms from its approved register and warning of sanctions for violations.
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Industry stakeholders say the lawsuit underscores growing tension between regulators and digital service providers over the scope and implementation of the rules. While regulators argue the framework is essential to curb predatory lending, some operators maintain that certain provisions may be overly expansive or legally ambiguous.
The case is expected to test the limits of regulatory authority in Nigeria’s digital finance space, with implications for fintech innovation, consumer protection, and compliance obligations across the sector.
The court has adjourned the matter for further hearing, where arguments from both parties will determine whether the contested provisions will be upheld, modified, or struck down.
