Court Upholds FCCPC Authority to Regulate Digital Lenders | ClipTV Online

The Federal Competition and Consumer Protection Commission (FCCPC) has resumed the implementation and enforcement Lending Regulations. The Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), following a Federal High Court judgment affirming the Commission’s statutory powers to regulate Nigeria’s digital lending sector.

The Commission announced the development on Monday, after the Federal High Court sitting in Lagos dismissed a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN). Thereby removing the legal impediment that had temporarily halted enforcement of the regulations.

According to the FCCPC, Justice A.L. Allagoa, in Suit No. FHC/L/CS/760/2026, dismissed the plaintiff’s Originating Summons in its entirety. The court rejected all the reliefs sought, and upheld the validity of the DEON Regulations. Ruling that they were made pursuant to the Commission’s constitutional and statutory powers.

The court also affirmed the legality of the specific provisions challenged in the suit and consequently discharged the interim ex parte order that had restrained the implementation and enforcement of the regulations.

The Commission explained that following the court’s interim order issued in April 2026, it immediately suspended implementation of the regulations in full compliance. That the decision was with the judicial directive, demonstrating its commitment to the rule of law and respect for the authority of the courts.

With the restraining order now vacated, the FCCPC said the regulations have become fully operational and enforceable across Nigeria’s digital lending ecosystem.

Reacting to the judgment, the FCCPC’s Director of Corporate Affairs, Mr. Ondaje Ijagwu, described the ruling as a victory for good governance.

He stated that the Commission had consistently maintained adherence to the rule of law. That the policy remain fundamental to effective regulation and institutional accountability.

Ijagwu noted that the FCCPC promptly complied with the court’s interim directive when it was issued. Nevertheless, he expressed satisfaction that the court had now affirmed the Commission’s legal authority to regulate the sector.

He assured stakeholders that the Commission would continue to discharge its statutory responsibilities professionally, faithfully, and in accordance with the law.

The FCCPC explained that the DEON Regulations were introduced to promote responsible lending practices. That DEON will also improve regulatory accountability, eliminate exploitative and unfair lending practices. Adding that it will help strengthen consumer protection within Nigeria’s rapidly expanding digital lending industry.

According to the Commission, the regulations are also designed to foster innovation and financial inclusion. Noting that FCCPC provide a transparent, fair, and accountable regulatory framework capable of inspiring confidence among consumers, investors, and responsible digital lending operators.

The Commission emphasized that the court’s judgment provides greater regulatory certainty for stakeholders. It reinforced efforts to sanitize the digital lending space, ensuring borrowers are protected from abusive practices and encouraging responsible operators to thrive under a clear legal framework.