A federal high court in Lagos has issued a temporary injunction preventing the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing certain provisions of its 2025 digital lending regulations. This significant legal challenge was brought forth by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), an industry group representing companies within the country's burgeoning digital lending sector. Justice Ambrose Lewis-Allagoa granted the interim order on Tuesday, April 14, following an urgent application filed by WASPA Nigeria.

WASPA Nigeria contended that specific sections of the recently published Digital, Electronic, Online, and Non-Traditional (DEON) Consumer Lending Regulations, which became effective in July 2025, would adversely impact its members' operations. These comprehensive regulations, designed by the FCCPC to foster fairness and transparency in digital lending, address critical aspects such as lender registration, ethical loan recovery practices, responsible customer data management, and the clear disclosure of loan terms. The FCCPC had previously set January 5, 2026, as the deadline for full compliance with these new rules.

The association specifically requested the court to restrain the FCCPC from enforcing paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32 of the regulations. Furthermore, WASPA sought to prevent the FCCPC from imposing any fines, sanctions, or directives on its member companies throughout the duration of the legal proceedings. After a thorough review of the arguments presented by WASPA Nigeria's lead counsel, Kemi Pinheiro, Justice Lewis-Allagoa determined that there was sufficient merit to provide temporary protection while the substantive case undergoes a full judicial examination.

Consequently, the court has explicitly barred the FCCPC from enforcing or taking any action related to the disputed portions of the regulations until a final decision is reached on the main issue. The injunction also prohibits the FCCPC from impeding WASPA members' continued operations or penalizing them for non-compliance with the challenged regulations. Moreover, the commission is forbidden from issuing any new orders or instructions that would further implement the contested rules. The case has been adjourned until April 27, when the court is scheduled to conduct a more detailed hearing to decide whether to extend the temporary order into a longer-term injunction, which would remain in effect throughout the lawsuit.

The FCCPC's regulations were introduced to mitigate pervasive issues within Nigeria's rapidly expanding digital loan industry, including the prevalence of hidden fees, the use of harsh debt collection methods, and the improper utilization of borrowers' private information. The forthcoming court decision on this matter will be pivotal in determining the extent to which these crucial regulations can be fully enforced to protect consumers and regulate the digital lending landscape.