COURT STOPS ENFORCEMENT OF DIGITAL LENDING RULES, GRANTS INJUNCTION AGAINST FCCPC
By Aishat Momoh
The Federal High Court sitting in Lagos has restrained the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing key provisions of its newly introduced Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
Justice Ambrose Lewis-Allagoa granted the interim injunction following an ex-parte motion filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), which is challenging the legality of the regulatory framework.
The association approached the court on April 14, 2026, seeking urgent intervention to halt enforcement of the regulations, widely referred to as the “DEON Consumer Lending Regulations,” pending the determination of the substantive suit.
In his ruling, Justice Lewis-Allagoa held that the applicant had established sufficient grounds to warrant interim protection. The application was argued by Prof. Kemi Pinheiro, SAN, alongside Bolu Agbaje Akadri and Muyiwa Odubela.
WASPA Nigeria argued that the FCCPC regulations would negatively impact its members operating within Nigeria’s digital lending ecosystem. The group urged the court to stop the commission from implementing or enforcing the contested provisions until the matter is fully determined.
Specifically, the association challenged several sections of the framework, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32. It also sought protection against sanctions, penalties, and regulatory directives that could disrupt members’ operations.
Granting the application, the court restrained the FCCPC from enforcing or giving effect to the disputed provisions pending the hearing of the motion on notice for interlocutory injunction.
The court further barred the commission from taking any action that could interfere with WASPA members’ ability to continue offering services under the regulatory framework. It also prohibited the imposition of fines or penalties related to alleged non-compliance.
Additionally, the FCCPC was restrained from issuing further directives connected to the implementation of the regulations until the matter is resolved.
The case has been adjourned to April 27, 2026, for hearing of the substantive application.
The ruling represents a temporary setback for the FCCPC, which introduced the regulations to strengthen oversight of Nigeria’s rapidly growing digital lending and fintech sector, with a focus on consumer protection, data privacy, and curbing unregulated lending practices.
However, stakeholders in the industry have raised concerns over the breadth of the regulations, citing potential implications for innovation, increased compliance costs, and operational constraints.
With the interim injunction now in place, attention will shift to the next hearing, where the court will decide whether to sustain or lift the restraining order pending final determination of the suit.
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