FCCPC resumes digital lending regulation as court vacates restraining order

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The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), following a judgment of the Federal High Court, Lagos, which upheld the validity of the regulations.

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Justice A.L. Allagoa of the Federal High Court, Lagos, on Monday dismissed the suit filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN), challenging the authority of the FCCPC to issue and enforce the regulations.

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In Suit No. FHC/L/CS/760/2026, the court rejected all reliefs sought by the plaintiff and ruled that the DEON Regulations were made within the statutory and constitutional powers of the commission.

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The court also affirmed the validity of the specific provisions of the regulations challenged in the suit and consequently discharged the interim order that had earlier restrained the FCCPC from implementing and enforcing the rules.

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Following the judgment, the FCCPC said the legal barrier that led to the temporary suspension of the regulations had been removed, making the DEON Regulations fully operational and enforceable.

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WASPAN had challenged the commission’s authority to regulate digital lending operators under the framework. Following an interim court order issued in April 2026, the FCCPC suspended implementation of the regulations in compliance with the directive.

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Reacting to the judgment, the Director of Corporate Affairs of the FCCPC, Mr. Ondaje Ijagwu, said the commission remained committed to the rule of law and effective regulation.

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“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,” he said.

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Ijagwu added that the court’s decision had reaffirmed the commission’s mandate to regulate the digital lending sector in line with its statutory responsibilities.

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According to him, the DEON Regulations were introduced to promote responsible lending, improve regulatory accountability, address unfair and exploitative practices, and strengthen consumer protection within Nigeria’s digital lending market.

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He said the commission would continue to support innovation and financial inclusion while ensuring that digital lending operates within a transparent, fair and accountable regulatory environment that protects consumers and encourages responsible operators.

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