COURT RESTRAINS FCCPC FROM ENFORCING 2025 DIGITAL LENDING REGULATION

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The federal high court in Lagos has restrained the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing parts of the digital, electronic, online, or non-traditional consumer lending regulations, 2025.

Ambrose Lewis-Allagoa, the presiding judge, granted the interim injunction following an ex-parte motion filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria).

The regulations, also known as the DEON consumer lending regulation, were officially gazetted and took effect on July 21, 2025.

In September 2025, FCCPC said the rules, issued under the Federal Competition and Consumer Protection Act (2018), would serve as a comprehensive framework for registration, transparency, and ethical loan recovery.

The commission said the document is also the framework for data privacy and responsible lending across all unsecured consumer credit offered through electronic and non-traditional channels.

In November 2025, FCCPC set January 5, 2026, as the deadline for full compliance with the regulations.

In its application, WASPA Nigeria argued that the regulations would adversely affect its members, who operate within Nigeria’s digital lending ecosystem.

On Tuesday, April 14, the association approached the court to seek urgent judicial intervention to stop the enforcement of key provisions of the regulatory framework.

The association urged the court to restrain the FCCPC from enforcing various provisions of the regulations, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32.

WASPA Nigeria asked the court to stop the FCCPC from imposing sanctions, penalties, or fines on its members, as well as from issuing directives that could affect their operations.

During the hearing, Kemi Pinheiro, the lead counsel to the applicant, made submissions regarding why the court should grant the interim injunction.

The judge held that the applicant had made a case to warrant interim protection pending further hearing of the suit.

The judge restrained the FCCPC from enforcing or giving effect to the contested provisions of the regulations, pending the hearing and determination of the motion on notice for interlocutory injunction.

The judge also barred the commission from taking any steps that would interfere with or prevent WASPA members from continuing to provide services or products regulated under the framework.

He also restrained FCCPC from imposing any sanctions or penalties on the association’s members arising from alleged non-compliance with the regulations.

The judge prohibited the commission from issuing any further orders or directives relating to the implementation or enforcement of the disputed regulatory framework.

The case was adjourned to April 27 for hearing of the substantive application.

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