Instant loans are becoming harder for many Nigerians to access as digital lenders tighten their lending conditions to comply with new rules introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
The development means borrowers who previously obtained loans within minutes through mobile apps may now face more checks before getting credit, particularly those considered high-risk.
Consumers repeatedly take loans from multiple digital lenders, end up struggling with repayment and in some cases, borrowing again simply to settle previous debts.
The new approach is part of the FCCPC’s effort to bring order to Nigeria’s fast-growing digital lending industry and protect borrowers from excessive charges, harassment and other abusive practices.
Under the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, digital lenders are required to assess whether a borrower can repay a loan before granting it.
The rules also prohibit unsolicited or automatic lending and require lenders to clearly disclose interest, fees and other charges before customers accept loans. The tougher requirements are forcing lenders to pay greater attention to borrowers’ ability to repay rather than simply approving applications based on limited information.
