Federal High Court upholds FCCPC regulations on digital lending

…Dismisses WASPAN challenge

The Federal High Court in Lagos has upheld the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, dismissing a suit filed by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN) challenging the Commission’s authority to issue and enforce the regulations.

The judgment, delivered on Monday by Justice A.L. Allagoa in Suit No. FHC/L/CS/760/2026, affirmed that the regulations were validly made pursuant to the FCCPC’s statutory and constitutional powers.

According to a statement signed by the Commission, the court dismissed the plaintiff’s originating summons in its entirety, declined all the reliefs sought and held that the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) were intra vires the FCCPC.

The court also upheld the validity of the specific provisions of the regulations challenged by WASPAN and discharged the interim ex parte order that had restrained the implementation and enforcement of the rules.

Following the judgment, the FCCPC announced that it had resumed implementation and enforcement of the DEON Regulations, noting that the legal impediment that prompted its temporary suspension of the regulations in April had now been removed.

WASPAN had instituted the suit, arguing that the Commission lacked the authority to issue and implement the regulations. Upon being served with the court’s interim order in April 2026, the FCCPC said it immediately suspended implementation and enforcement of the regulations in compliance with the court’s directive.

Reacting to the judgment, Ondaje Ijagwu, the Commission’s Director of Corporate Affairs, said the ruling reinforces the importance of the rule of law in effective regulation and good governance.

“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. Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law,” he said.

Ijagwu said the regulations were intended to promote responsible lending, strengthen regulatory accountability and protect consumers in Nigeria’s rapidly growing digital lending market.

According to him, the framework is designed to curb unfair and exploitative lending practices while fostering innovation and financial inclusion within a transparent and accountable regulatory environment.

“Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike,” he added.

The DEON Regulations provide the regulatory framework for digital, electronic, online and other non-traditional consumer lenders, and form part of the FCCPC’s efforts to strengthen oversight of Nigeria’s digital credit ecosystem amid growing concerns over consumer rights, debt recovery practices and market conduct.