The Federal Competition and Consumer Protection Commission has locked Nigeria’s digital lending sector in place. A Federal High Court order has halted all new licences under the 2025 lending regulations. The FCCPC confirmed the freeze on Sunday after a false report claimed 48 new loan apps had been approved.
The disputed report surfaced online on Saturday. It claimed the FCCPC had raised the number of licensed digital lenders to 505. The commission immediately dismissed the story as misleading. In a statement on its official X account, the FCCPC said no new approvals had been granted. It stressed that the court order prevents any action under the suspended Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations 2025.
The legal restraint stems from a suit filed by the Wireless Application Service Providers Association of Nigeria. On April 15 2026 the Federal High Court in Lagos granted an ex parte order. The order stopped the FCCPC from implementing or enforcing the 2025 regulations. The case remains pending. The FCCPC said it is complying fully with the court directive. It warned the public to ignore any reports suggesting fresh licences have been issued.
The freeze creates a regulatory vacuum. Nigeria’s digital lending sector has grown rapidly in the last three years. Over 450 apps were licensed before the court order. Many operate in a grey zone. They charge annual interest rates above 300 percent. They use aggressive debt recovery tactics. Borrowers report harassment of contacts listed on their phones. The FCCPC introduced the 2025 regulations to curb these practices. The rules require lenders to disclose full interest rates. They ban the use of borrower data for recovery actions. They mandate a cooling-off period before loans can be rolled over.
The court order has left these protections in limbo. Industry analysts say the pause benefits unscrupulous operators. They can continue predatory practices without fear of enforcement. The FCCPC has no power to sanction lenders under the suspended rules. Borrowers have no legal recourse if lenders breach the frozen regulations. Consumer advocacy groups warn the vacuum could last months. The Federal High Court has not set a date for the next hearing. Legal experts say the case could drag into 2027 if appeals are filed.
The freeze also exposes a deeper institutional clash. The FCCPC and the Central Bank of Nigeria have overlapping jurisdiction over digital lenders. The CBN regulates financial institutions. The FCCPC oversees consumer protection. The 2025 regulations were designed to bridge the gap. They gave the FCCPC direct oversight of digital lenders. The CBN was not consulted before the rules were published. Some analysts believe the court challenge was orchestrated by CBN-backed interests. The Wireless Application Service Providers Association is dominated by CBN-licensed payment service banks. These banks offer airtime credit and micro-loans. They compete directly with digital lenders.
The FCCPC has faced repeated false reports since the court order. In early June a story claimed President Bola Tinubu had approved nine fintech firms to restructure Nigeria’s airtime credit sector. The firms named included Technotrends Platforms Nigeria Limited and Total Tim Nigeria Limited. The FCCPC denied the report. It said the regulatory framework cited in the story was the same one suspended by the court. The pattern suggests a coordinated campaign to undermine the FCCPC’s authority. The commission has not named any suspects. It has referred the matter to the Nigerian Police Force for investigation.
The freeze has economic consequences. Digital lending apps have become a key source of credit for Nigeria’s unbanked population. Over 60 million Nigerians lack access to traditional banking. Many rely on digital lenders for emergency funds. The sector disbursed 1.2 trillion naira in loans in 2025. The court order has slowed new lending. Some apps have stopped offering loans. Others have raised interest rates to offset perceived risk. Small businesses report difficulty accessing credit. The Nigerian Association of Small and Medium Enterprises says the freeze could cost 500 000 jobs if it extends beyond six months.
The FCCPC remains defiant. It says the court order is a temporary setback. It has vowed to defend the 2025 regulations in court. The commission argues the rules are necessary to protect consumers. It points to a 2025 survey that found 78 percent of digital loan borrowers had experienced harassment. The FCCPC says the regulations will reduce this figure. It has called on the public to support its efforts. The commission has set up a hotline for borrowers to report abuses. It says it will use existing laws to sanction lenders who violate consumer rights.
