The National Institute of Credit Administration (NICA) has commended the Federal Competition and Consumer Protection Commission (FCCPC) for licensing five airtime and data lending firms.
Prof. Chris Onalo, NICA’s Registrar/Chief Executive Officer, said this in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.
Onalo said the move would promote competition, expand consumer choice, and formalise access to micro-credit across Nigeria’s growing digital lending ecosystem.
NAN reports that FCCPC began enforcing its Digital Electronic Online, Non-Traditional (DEON) Consumer Lending Regulations 2025 in January 2026.
Under the framework, FCCPC approved firms including Total Tim Nigeria Ltd, Rane Interactive Medien CLS Ltd, and Mode NG Applications Nigeria Ltd to operate airtime and data lending services.
Onalo noted that the policy followed the suspension of similar services by MTN and Airtel over non-compliance with the new consumer lending rules.
He described the unbundling of airtime credit from telecommunications operators as a positive step toward eliminating anti-competitive practices in the sector.
He, however, warned that the development presents significant risks if not properly regulated, particularly for first-time borrowers entering the formal credit system.
He said airtime loans represented the first credit experience for about 40 million Nigerians, making default management critical to national credit health.
He cautioned that poorly managed micro-defaults could result in widespread negative credit records, limiting access to future financing for business, housing, and other productive purposes.
The NICA boss also raised concerns about regulatory arbitrage, noting that DEON lenders were exempted from Central Bank of Nigeria prudential requirements under existing banking laws.
He said the absence of capital adequacy and loan-loss provisioning rules could heighten systemic risks in high-volume digital micro-lending operations.
He acknowledged FCCPC’s consumer protection provisions, including fee disclosure, data privacy safeguards, and limits on multiple lending applications per operator.
Onalo, however, stressed that disclosure alone was insufficient without strong financial literacy programmes and professional credit management practices.
He said the licensing framework presents a strategic opportunity to deepen Nigeria’s credit economy by capturing data from previously unbanked and underserved borrowers.
He described the initiative as the “front door” to a sustainable credit system that must be protected from predatory lending practices.
He reiterated that even small defaults could have long-term consequences on borrowers’ access to larger credit facilities.
He also observed a gap in professional requirements, noting that the regulations do not mandate certified credit professionals to manage lending and recovery processes.
Onalo said this omission undermined the intent of the NICA Act 2022, which regulated credit management practice in Nigeria.
He, therefore, issued a five-point directive to strengthen oversight and protect consumers within the evolving digital credit ecosystem.
The credit economy expert called for mandatory licensing of credit personnel, financial education for first-time borrowers, and delayed reporting of minor defaults to credit bureaus.
He also proposed integration with the National Collateral Registry for business-related credit and a joint oversight framework involving FCCPC, NICA, and the Central Bank of Nigeria.He reaffirmed NICA’s commitment to enforcing professional standards to ensure responsible credit growth and protect public trust in Nigeria’s financial system.
