Nigeria’s digital lending sector is pivoting away from high-risk, unsecured nano loans as stricter regulatory oversight and rising operational costs reshape the industry. Under the Federal Competition and Consumer Protection Commission’s (FCCPC) 2025 Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, lenders are moving toward structured, longer-tenure financing tied to verifiable income. This shift, spurred by the recent court victory upholding the FCCPC’s regulatory authority, aims to curb unethical debt recovery while prioritizing sustainable lending models. Currently, there are 525 FCCPC-approved digital lenders, with the regulator intensifying efforts to remove non-compliant operators from mainstream platforms.