………Judge Dismisses WASPAN Suit, Upholds 2025 DEON Regulations.
FIC Report (Lagos State) – The Federal Competition and Consumer Protection Commission has resumed full implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulation, 2025, following a decisive court ruling on Monday.
Justice A. L agoa of the Federal High Court, Lagos, in Suit No. FHC/L/CS/760/2026 filed by the Wireless Application Service Provider Association of Nigeria Ltd/Gte, WASPAN, dismissed the case in its entirety and affirmed the Commission’s power to regulate the sector.
In his judgment delivered on July 20, Justice Alagoa declined all reliefs sought by WASPAN. The court held that the DEON Regulations were made pursuant to the FCCPC’s statutory and constitutional powers and were therefore ntra vires the Commission.
It also upheld the specific provisions of the Regulations that were challenged and consequently discharged the interim ex parte order that had halted their implementation since April.
With that legal hurdle cleared, the FCCPC says the Regulations are “once again fully operational and enforceable.”
WASPAN had challenged the Commission’s authority to issue and enforce the DEON Regulations. Upon being served with the interim court order in April 2026, the FCCPC said it immediately suspended implementation in deference to the judiciary.
Reacting to the judgment, Mr. Ondaje Ijagwu, Director of Corporate Affairs, FCCPC, said the Commission remains committed to the rule of law.
“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance,” Ijagwu told Badagry Today .
“When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive. Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.
According to the Commission, the 2025 Regulations were designed to clean up Nigeria’s booming but largely unregulated digital lending space.
“The DEON Regulations are designed to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market,” Ijagwu stated.
He added that the goal has “always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike.”
With the interim order lifted, FCCPC enforcement teams can now resume oversight of loan apps, including registration, interest rate disclosures, data privacy compliance, and debt recovery practices.
Industry watchers say the ruling gives regulators more teeth to go after predatory lenders that have been accused of harassment, data breaches and exorbitant interest rates.
The Commission said it will publish fresh compliance guidelines for all digital lenders in the coming days.
Sourced and Reported by:
IYEDEH, Onowouzou David
ACIO&PRO
21/07/2026
