The number of officially registered digital lenders, commonly referred to as loan apps, has risen sharply in recent months, reaching 492 in October as more companies sought to avoid a N100 million penalty.

This surge follows the Federal Competition and Consumer Protection Commission rolling out new regulations for all digital lenders in Nigeria.

Under the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025—which took effect on July 21, 2025, all digital lenders are required to register with the FCCPC within 90 days of starting operations.

According to the Commission, operators who fail to comply may face penalties, including fines of up to N100 million or 19% of their turnover, as well as possible disqualification of directors for up to five years.

FCCPC data shows that as of May, 425 digital lenders, including those licensed by the Central Bank of Nigeria, were registered. This means that 67 additional companies have applied for registration in the past four to five months.

This shows that 67 companies sought registration with the industry watchdog over the past four to five months.

FCCPC’s database reveals that of the 492 registered digital lenders, 434 have received full approval, while 36 hold conditional approval. The remaining 22 are licensed by the CBN; although CBN-licensed lenders are exempt from FCCPC registration, the Commission continues to monitor them.

According to Executive Vice Chairman and CEO Mr. Tunji Bello, the new regulations for digital lenders were introduced in response to the growing unethical practices within the digital lending sector.

“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers, or the rule of law,” Bello stated.

“These Regulations provide the legal tools to hold violators accountable and promote responsible digital finance. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.’

The Regulations provide a comprehensive legal framework to register, monitor, and enforce compliance for all digital and non-traditional lending activities in Nigeria.