Nigeria’s digital lenders worried over FCCPC’s new rule on loan app

The Federal Competition and Consumer Protection Commission, FCCPC, has disclosed its readiness to release new rules over interest rates charged by Digital lenders in Nigeria which is said to be too high.

The development has sent fears into the loan app operators, even as complaints by Nigerian has drawn the attention of the Commission.

The Commission said the complaint by digital lenders popularly known as loan apps, are too high, the Commission, through its Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, said it will now monitor the rates.

“The Commission shall periodically monitor interest rates for services of consumer lending, and ensure rates are not exploitative and inimical to consumer interest. Such monitoring shall be made in compliance with provisions of Guidelines developed pursuant to Section 163 of the Act,” the FCCPC stated in the regulation recently released to all players.

This provision in the regulation has, however, not gone down well with the lenders, who insist that interest should be determined by the cost of funds and the level of risk.

Speaking with journalists, the President of the Money Lenders Association (MLA), Mr. Gbemi Adelekan, said this aspect of the regulation may disrupt the flow of the highly risky digital lending market.

“This is a difficult area because for us, the interest rate is determined by the credit risk, market risk, and cost of funds.

“Unless the authorities are planning to give us funds to be able to operate and bring more people into the ecosystem in terms of financial inclusion, I don’t know how this will work,” he said.