Court Halts Enforcement of Digital Lending Regulations, Grants Interim Injunction Against FCCPC

MICHAEL AKINOLA 

The Federal High Court sitting in Lagos has restrained the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing parts of its newly issued Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, pending the determination of a substantive application before the court.

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 and implementation of the regulations.

The association had approached the court on April 14, 2026, seeking urgent judicial intervention to stop the enforcement of key provisions of the regulatory framework, popularly referred to as the “Deon Consumer Lending Regulations.”

In a ruling delivered after hearing submissions from counsel to the applicant, Kemi Pinheiro, SAN, alongside Bolu Agbaje Akadri, Esq., and Muyiwa Odubela, Esq., the court held that the applicant had made a case warranting interim protection pending further hearing.

WASPA Nigeria, in its application, argued that the FCCPC’s regulations would adversely affect its members, who operate within Nigeria’s digital and online consumer lending ecosystem.

The group sought to prevent the commission from implementing, enforcing, or taking any steps under the disputed regulations until the court determines the legality of the framework.

Specifically, the association urged the court to restrain the FCCPC from enforcing various provisions of the regulations, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32. It also asked the court to stop the commission from imposing sanctions, penalties, or fines on its members, as well as from issuing directives that could affect their operations.

After considering the motion ex-parte and supporting affidavit sworn by Ayo Stuffman, a Nigerian citizen residing in Lagos, Justice Lewis-Allagoa held that an interim order of injunction was justified in the circumstances.

The court accordingly restrained the FCCPC from enforcing or giving effect to the contested provisions of the regulations, pending the hearing and determination of the motion on notice for interlocutory injunction.

The judge also barred the commission from taking any steps that would interfere with or prevent WASPA members from continuing to provide services or products regulated under the framework.

Additionally, the FCCPC was restrained from imposing any sanctions or penalties on the association’s members arising from alleged non-compliance with the regulations.

In the same vein, the court prohibited the commission from issuing any further orders or directives relating to the implementation or enforcement of the disputed regulatory framework.

The matter has been adjourned to April 27, 2026, for hearing of the substantive application.

The order marks a significant temporary setback for the FCCPC, which recently introduced the regulations as part of efforts to strengthen oversight of Nigeria’s rapidly expanding digital lending and fintech ecosystem.

The framework was designed to address consumer protection concerns, data privacy issues, and unregulated lending practices in the sector.

However, stakeholders in the digital services and lending space have continued to raise concerns about the scope and potential impact of the regulations on innovation, compliance costs, and operational freedom.

With the interim injunction now in place, attention will shift to the next hearing date, where the court is expected to consider arguments on whether the restraining order should be extended or lifted pending full determination of the suit.