Resumption Of Enforcement Of The FCCPC Digital, Electronic, Online Or Non-Traditional Consumer Lending Regulations, 2025 ("Deon Regulations") Following Judgment Of The Federal High Court In Waspan V. FCCPC

Introduction

On Monday, July 20, 2026, the Federal High Court, Lagos Judicial Division, presided over by Hon. Justice Allagoa J, delivered judgment in Suit No. FHC/L/CS/760/2026 between Wireless Application Service Providers Association of Nigeria Ltd/Gte v. Federal Competition and Consumer Protection Commission (“FCCPC”), dismissing in its entirety the Originating Summons filed by the Wireless Application Service Providers Association of Nigeria ("WASPAN"). The Court also discharged the interim ex parte order made in April, 2026, which had restrained the FCCPC from implementing and enforcing the Digital, Electronic, Online or Nontraditional Consumer Lending Regulations, 2025, (the “DEON Regulations”).  

The Court held that the DEON Regulations were validly made pursuant to the FCCPC's statutory and constitutional powers and are accordingly intra vires the Commission’s powers.

Following the judgment, the FCCPC has announced that the DEON Regulations are once again fully operational and enforceable with immediate effect.

Background 

The DEON Regulations were issued by the FCCPC on July 21, 2025, pursuant to sections 17, 18 and 163 of the Federal Competition and Consumer Protection Act (FCCPA), 2018. The Regulations introduced a comprehensive framework governing the registration, licensing, conduct and supervision of digital and nontraditional consumer lenders in Nigeria, including fintechs, mobile lending applications, and their collaborative partners, with a particular focus on curbing predatory and exploitative lending practices, improving disclosure standards, and strengthening data protection compliance in the sector.

WASPAN, an association representing certain operators in the digital lending ecosystem, instituted proceedings before the Federal High Court, Lagos Judicial Division, challenging the FCCPC's statutory authority to issue and enforce the DEON Regulations.

WASPAN amongst other things, specifically contested the provisions relating to the mandatory registration and approval requirements, obligations imposed on collaborative lending arrangements, and related compliance obligations, contending that these provisions were unduly burdensome on its members.  

Upon being served with the Court's interim ex parte order in April 2026, the FCCPC suspended implementation and enforcement of the DEON Regulations in full pending determination of the substantive suit.

The Court dismissed the Originating Summons in its entirety and declined all reliefs sought by WASPAN. The Court upheld the validity of the DEON Regulations, holding that they were made pursuant to the FCCPC's statutory and constitutional powers and are therefore intra vires the Commission.

The Court specifically upheld the validity of the provisions of the DEON Regulations challenged in the suit and vacated the interim ex parte order it had earlier issued restraining the implementation and enforcement of the Regulations.

Business Impact

With the discharge of the  interim order, businesses operating  digital lending, mobile lending, buy-now-paylater, and other non-traditional consumer credit services are once again subject to the DEON Regulations and the FCCPC’s resumed enforcement activities.

Businesses that deferred compliance measures (registration filings, disclosure updates, partnership documentation), on the strength of the earlier interim order should promptly resume their compliance efforts.

Entities participating in collaborative lending arrangements, including through agencies, technology support, payment infrastructure or other commercial partnerships, should reassess the extent to which their activities fall within the scope of the Deon Regulations, and ensure continued compliance.

The judgment affirms the FCCPC’s authority to regulate the digital lending sector under the FCCPA. Accordingly, businesses should not assume that the possibility of an appeal or further legal proceedings relieves them of their current compliance obligations unless otherwise directed by a competent court.  

Recommended Steps

We recommend that affected businesses take the following steps without delay:

1. Confirm and where necessary, complete registration and approval status with the FCCPC without delay.
2. Conduct an internal compliance audit against the DEON Regulations, covering lending terms, disclosure documentation, debt-recovery practices, and data-handling procedures.
3. Review collaborative, agency and partnership arrangements relating to lending operations to ensure they comply with the requirements of the DEON Regulations and are appropriately documented.
4. Monitor any further judicial developments, including any appeal that may be filed, as well as additional guidance or compliance directives issued by the FCCPC.
5. Seek legal advice where necessary to assess compliance obligations and regularise any outstanding regulatory requirements.

Conclusion

This Federal High Court’s judgment confirms the validity of the DEON Regulations and removes the interim restraint on their enforcement. As a result, the FCCPC has resumed implementation and enforcement of the Regulations, making compliance an immediate priority for businesses operating within Nigeria's digital lending ecosystem.  

Affected businesses should therefore take prompt steps to assess their regulatory position.  

We remain available for further clarification should the need arise.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.