Unknown Sponsor Bank
Nigeria
The Federal High Court in Lagos dismissed a suit brought by the Wireless Application Service Providers Association of Nigeria (WASPAN) that had challenged the FCCPC's authority to issue and enforce the DEON Regulations of 2025. The court upheld the validity of the regulations and confirmed they were made within FCCPC's statutory and constitutional powers, vacating a prior interim order that had restrained enforcement. With this legal barrier removed, the FCCPC declared the DEON Regulations fully operational, enabling active supervision and enforcement against digital lending platforms and related fintech-bank arrangements. This directly impacts bank-fintech partnerships in digital lending, as many online lenders rely on bank infrastructure, funding lines, and payment channels; FCCPC's renewed enforcement powers increase regulatory risk for arrangements involving abusive collection practices, non-transparent pricing, or data misuse.
Verified from source: The Federal High Court in Lagos dismissed WASPAN's challenge to the FCCPC's authority over digital lending regulations, discharging the interim restraining order. The FCCPC announced that its 2025 DEON Regulations are now fully operational and enforceable.
- Digital lenders operating through bank partnerships in Nigeria face heightened enforcement risk under the reinstated DEON Regulations
- Banks providing infrastructure, funding lines, or payment channels to digital lenders must ensure their fintech partners comply with FCCPC consumer protection standards
- BaaS-style arrangements in Nigeria's digital lending market may require enhanced due diligence and compliance monitoring