Digital Lending Agreement (Nigeria)
CBN Framework 2022 | FCCPC Guidelines | NDPA 2023
DIGITAL LENDING AGREEMENT
CBN Framework for Digital Lending 2022 | FCCPC Digital Lending Guidelines 2022 | NDPA 2023 | Evidence Act 2011
This Digital Lending Agreement ("Agreement") is entered into on [Agreement Date]
BETWEEN:
(1) [Lender Name] (RC: [Lender RC Number], Licence/Registration No.: [Lender Licence Number]) of [Lender Address] ("Lender"); AND
(2) [Borrower Name] (BVN/NIN: [Borrower BVN/NIN]) of [Borrower Address] ("Borrower").
KEY FACTS STATEMENT (KFS)
As required by the FCCPC Digital Lending Guidelines 2022 and CBN Consumer Protection Framework, the following key facts are disclosed before the Borrower's acceptance:
Loan Amount: NGN [Loan Amount]
Processing Fee: [Processing Fee]
Interest Rate: [Interest Rate]
Annual Percentage Rate: [APR]
Loan Term: [Loan Term]
Late Payment Penalty: [Late Payment Penalty]
Repayment Method: [Repayment Method]
1. LOAN TERMS
1.1 Loan Amount: The Lender agrees to disburse NGN [Loan Amount] to the Borrower by [Disbursement Method] on the date of this Agreement, subject to successful identity verification.
1.2 Interest: Interest shall accrue at [Interest Rate] (APR: [APR]) on the outstanding principal balance from the date of disbursement.
1.3 Repayment: The Borrower shall repay the loan according to the following schedule: [Repayment Schedule].
1.4 Late Payment: If any payment is not received by the due date, a late penalty of [Late Payment Penalty] shall apply to the overdue amount.
2. BORROWER OBLIGATIONS
2.1 The Borrower shall repay all amounts due on the dates specified in Clause 1.3.
2.2 The Borrower shall notify the Lender promptly of any change of address, phone number, employment, or bank account details.
2.3 The Borrower confirms that all information provided at onboarding was accurate and complete.
3. DATA PROCESSING CONSENT (NDPA 2023)
3.1 The Borrower gives specific, freely given, and informed consent to the Lender processing the following personal data for the purposes of loan assessment, disbursement, repayment management, and regulatory reporting: [Data Collected].
3.2 The Lender expressly confirms that it will NOT access the Borrower's phone contacts, photo gallery, email accounts, or social media accounts, in compliance with the FCCPC Digital Lending Guidelines 2022.
3.3 The Borrower's data will be shared with [Credit Bureau Name] under the Credit Reporting Act 2017 for credit reporting purposes.
3.4 The Borrower may withdraw consent for non-essential processing and may request access, correction, or deletion of personal data by contacting the Lender's Data Protection Officer.
4. CREDIT BUREAU REPORTING
4.1 The Lender will report the Borrower's repayment performance to [Credit Bureau Name] as required by the Credit Reporting Act 2017. Timely repayment will be reported as positive payment history; default will be recorded as negative information and may affect the Borrower's future credit access.
5. DEFAULT AND RECOVERY
5.1 The Borrower shall be in default if any payment is not received by the due date.
5.2 On default, the Lender shall provide reasonable notice to the Borrower and may: (a) charge the late payment penalty stated in Clause 1.4; (b) report the default to licensed credit bureaux; (c) debit the Borrower's designated repayment account; and (d) initiate debt recovery proceedings through lawful channels.
5.3 The Lender shall NOT: (a) contact persons in the Borrower's contact list who are not named guarantors; (b) publicly disclose the Borrower's indebtedness; (c) use threatening or abusive language; or (d) take any other action prohibited by the FCCPC Digital Lending Guidelines 2022. Violations may be reported to the FCCPC Consumer Portal.
6. ELECTRONIC SIGNATURE
6.1 The Borrower's acceptance of this Agreement (whether by clicking 'Accept', entering a PIN, or providing OTP confirmation through the Lender's digital platform) constitutes a valid and binding electronic signature in accordance with Section 93 of the Evidence Act 2011 and the Cybercrimes (Prohibition, Prevention, etc.) Act 2015.
7. GOVERNING LAW
7.1 This Agreement is governed by the laws of the Federal Republic of Nigeria, including the CBN Framework for Digital Lending 2022 and the FCCPC Digital Lending Guidelines 2022. Disputes may be submitted to the CBN Consumer Protection Department, the FCCPC, or the Federal High Court of Nigeria.
Lender (Authorised Representative)
________________
Signature
Borrower (Electronic or Written Signature)
________________
Signature
What Is a Digital Lending Agreement (Nigeria)?
A Digital Lending Agreement in Nigeria governs the relationship between the parties by fixing what each must do.
Digital lending in Nigeria is regulated by a framework involving multiple regulatory bodies. The Central Bank of Nigeria (CBN) issued the Framework for the Regulation and Supervision of Digital Lending in Nigeria in 2022, which requires all digital lenders to obtain either a CBN Money Lending Licence or a relevant fintech licence, and sets standards for transparent disclosure of interest rates, fees, and terms. The Federal Competition and Consumer Protection Commission (FCCPC) issued the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (FCCPC Digital Lending Guidelines) following widespread consumer complaints about unethical lending practices, including harassment of borrowers and unauthorised access to contacts. The Consumer Credit Corporation of Nigeria (CREDICORP), established under the Consumer Credit Act 2024, oversees consumer credit practices including digital lending.
The Nigeria Data Protection Regulation 2019 (NDPR) — issued by the National Information Technology Development Agency (NITDA) — imposes strict requirements on digital lenders regarding the collection, processing, and storage of borrowers' personal data, including their financial data, biometric data, and contact information. The FCCPC Digital Lending Guidelines specifically prohibit digital lenders from accessing a borrower's contact list, gallery, or social media accounts, and prohibit harassment or public shaming of defaulting borrowers.
Interest rates on digital loans must be disclosed as an Annual Percentage Rate (APR) or equivalent under the CBN's consumer protection framework, and digital lenders must provide a Key Facts Statement (KFS) before a loan is disbursed. Electronic signatures on digital lending agreements are given legal effect by the Evidence Act 2011 and the Cybercrimes (Prohibition, Prevention, etc.) Act 2015.
The legal framework governing the Digital Lending Agreement (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Digital Lending Agreement (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Banks and Other Financial Institutions Act (BOFIA) 2020 sets the foundational requirements.
When Do You Need a Digital Lending Agreement (Nigeria)?
A Digital Lending Agreement is needed in Nigeria whenever a fintech company, digital lender, or online microfinance institution disburses a loan through a digital platform and needs a legally compliant record of the lending arrangement.
A Digital Lending Agreement is required when a licensed fintech company deploys a mobile lending app (such as those regulated by the CBN) to disburse consumer loans to individuals for personal, household, or business purposes. The agreement documents the terms and provides compliance evidence for CBN supervision.
A Digital Lending Agreement is needed when a microfinance bank licensed by the CBN uses digital channels (mobile app, USSD, or web portal) to advance small business loans to SMEs — the agreement records the loan terms, repayment obligations, and data consent in a format admissible in evidence under the Evidence Act 2011.
A Digital Lending Agreement is required when a buy-now-pay-later (BNPL) platform offers deferred payment facilities to Nigerian consumers purchasing goods or services online — the agreement governs the BNPL arrangement and the consumer's repayment obligations.
A Digital Lending Agreement is needed when a corporate employer operates a salary advance scheme through a digital platform for employees, needing clear documentation of each advance, the agreed deduction from salary, and the employee's consent to payroll deductions.
A Digital Lending Agreement is used in peer-to-peer (P2P) lending platform transactions where the platform intermediate between individual lenders and borrowers, requiring each lending arrangement to be documented with a compliant agreement.
Parties in Nigeria should prepare a Digital Lending Agreement (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Digital Lending Agreement (Nigeria)
A Digital Lending Agreement compliant with Nigerian law should include the following essential elements.
Parties: Full legal names and identifiers of the lender (including Central Bank of Nigeria (CBN) Money Lending Licence number or Federal Competition and Consumer Protection Commission (FCCPC) registration number under the FCCPC Digital Lending Guidelines 2022) and borrower (including Bank Verification Number (BVN) administered by the CBN through the Nigeria Inter-Bank Settlement System (NIBSS), National Identity Number (NIN) issued by NIMC, or other identity verification reference used at onboarding).
Key Facts Statement (KFS): A clear, prominent summary of all fees, interest rates, repayment terms, and consequences of default — as mandated by the CBN Consumer Protection Framework and the FCCPC Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022. The KFS must be presented to the borrower before loan disbursement.
Loan Amount and Disbursement: The principal loan amount in Nigerian Naira (NGN), disbursement method (direct bank transfer, mobile wallet, or USSD credit), and disbursement timeline.
Interest Rate and Fees: The interest rate expressed as both a periodic rate and an Annual Percentage Rate (APR) calculated in accordance with CBN disclosure standards, processing fees, late payment penalties, and all other charges. All fees must be disclosed upfront — undisclosed fees contravene the FCCPC Guidelines and expose the lender to sanctions.
Repayment Schedule: Repayment dates, instalment amounts, and repayment method (automatic direct debit authorised by the borrower, bank transfer, or USSD payment). Direct debit mandates must comply with CBN Direct Debit Scheme Rules.
Data Consent: A specific, freely given, informed, and unambiguous consent clause for data processing under the Nigeria Data Protection Regulation (NDPR) 2019 — supervised by the Nigeria Data Protection Commission (NDPC) — covering: categories of data collected, purpose of processing, retention period, credit bureaux (CRC Credit Bureau Limited, Credit Registry Corporation Nigeria, XDS Credit Bureau) with whom data is shared under the Credit Reporting Act 2017, and the borrower's rights to access and correct data. The agreement must explicitly prohibit access to the borrower's phone contacts, gallery, or social media accounts as required by the FCCPC Digital Lending Guidelines 2022.
Credit Bureau Reporting: Confirmation that the lender will report repayment performance — positive and negative — to CBN-licensed credit bureaux under the Credit Reporting Act 2017. Borrowers must be notified that default will result in a negative entry on their credit report, affecting future access to credit from banks and other financial institutions regulated by the CBN.
Electronic Signature: Acknowledgement that the borrower's electronic signature (click-through, PIN, OTP, or biometric confirmation) constitutes a valid legally binding signature under Section 93 of the Evidence Act 2011 (Cap. E14, LFN 2011) and the Cybercrimes (Prohibition, Prevention, etc.) Act 2015.
Default and Recovery: Remedies upon default limited to lawful collection methods permitted by the FCCPC Guidelines — no harassment, no contact of third parties not named as guarantors, no public disclosure of the borrower's indebtedness. Disputes may be referred to the Federal High Court, relevant state High Courts, or the Consumer Tribunal established under the FCCPC Act 2018.
Governing Law and Dispute Resolution: Laws of Nigeria, with the Federal High Court or relevant state High Court having jurisdiction. The Federal Inland Revenue Service (FIRS) administers withholding tax and VAT on interest income. Forms-legal.com provides this Digital Lending Agreement template as a starting point under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the CBN Framework for Digital Lending 2022.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Digital Lending Agreement (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/financial/loans/digital-lending-agreement-nigeria
"Digital Lending Agreement (Nigeria) (Nigeria)." Forms Legal, 2026, https://forms-legal.com/nigeria/financial/loans/digital-lending-agreement-nigeria.
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author = {{Forms Legal}},
title = {Digital Lending Agreement (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/financial/loans/digital-lending-agreement-nigeria}},
note = {Free legal document template. Based on Banks and Other Financial Institutions Act (BOFIA) 2020}
}Also available for these jurisdictions:
Frequently Asked Questions
Digital lending agreements are legally binding in Nigeria provided they meet the requirements for valid contracts under Nigerian law — offer, acceptance, consideration, intention to create legal relations, and capacity of the parties — and comply with the applicable regulatory framework. Electronic signatures on digital loan agreements are given legal force by Section 93 of the Evidence Act 2011, which provides that electronic records and signatures are admissible in evidence. The Cybercrimes (Prohibition, Prevention, etc.) Act 2015 also provides for the legal validity of electronic transactions. The CBN Framework for Digital Lending 2022 and the FCCPC Digital Lending Guidelines 2022 require digital lenders to obtain clear consent from borrowers before disbursing funds, and mandate disclosure of all key terms before loan execution. A digital agreement executed through a regulated platform — with identity verification via BVN or NIN, OTP confirmation, and a documented Key Facts Statement — is fully enforceable by the lender against the borrower in Nigerian courts.
The Federal Competition and Consumer Protection Commission (FCCPC) Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 imposes several important restrictions on digital lenders in Nigeria. The Guidelines prohibit: (1) accessing a borrower's phone contacts, gallery, email, or social media accounts without specific, explicit, and freely given consent; (2) using a borrower's contact list to shame, threaten, or harass the borrower or their contacts in the event of default; (3) contacting persons in the borrower's contacts who are not guarantors or emergency contacts for the purpose of debt recovery; (4) publicising a borrower's indebtedness; (5) charging undisclosed fees or changing the loan terms after disbursement; and (6) operating without registration with the FCCPC. Digital lenders found to violate these guidelines face administrative sanctions, fines, and suspension of operations by the FCCPC, which has already delisted and sanctioned multiple non-compliant apps. Borrowers who experience prohibited conduct may report to the FCCPC Consumer Portal or the CBN Consumer Protection Department.
The Credit Reporting Act 2017 established a framework for credit reporting in Nigeria, requiring financial institutions and other credit providers — including digital lenders — to submit credit information to licensed credit bureaux. Digital lenders regulated by the CBN or registered with the FCCPC are obligated to report borrowers' loan performance data to licensed credit bureaux such as CRC Credit Bureau Limited, Credit Registry Corporation Nigeria Limited, and XDS Credit Bureau. This means that a borrower who defaults on a digital loan will have a negative entry on their credit report, which can affect their ability to access future credit from banks, microfinance institutions, and other digital lenders. Conversely, borrowers who repay digital loans on time can build positive credit histories that improve their credit scores. The Credit Reporting Act also gives borrowers the right to access their own credit report and to dispute inaccurate information. Digital lenders must notify borrowers in their lending agreement that credit information will be reported to credit bureaux, and this notice forms a mandatory element of a compliant Digital Lending Agreement.
A Digital Lending Agreement (Nigeria) does not legally require a lawyer in Nigeria, and individuals and businesses may draft and execute the document independently. The Banks and Other Financial Institutions Act (BOFIA) 2020 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Nigeria lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of Nigeria has jurisdiction over disputes arising from this type of document, and Corporate Affairs Commission (CAC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
Digital lenders in Nigeria must obtain the appropriate regulatory authorisation before disbursing loans, as operating without a licence exposes the lender to significant sanctions. The primary regulatory pathways are as follows. First, a Central Bank of Nigeria (CBN) Money Lenders Licence or a relevant CBN fintech licence (such as a Payment Service Provider licence or a Microfinance Bank licence) is required for lenders who wish to mobilise deposits or operate payment systems alongside lending. The CBN regulates these entities under the Banks and Other Financial Institutions Act 2020 (BOFIA 2020) and the CBN Framework for the Regulation and Supervision of Digital Lending in Nigeria 2022. Second, regardless of CBN licensing status, all digital lenders must register with the Federal Competition and Consumer Protection Commission (FCCPC) under the FCCPC Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022. The FCCPC has published a whitelist of approved lenders on its website (fccpc.gov.ng), and borrowers are advised to verify that a digital lender appears on this whitelist before accepting a loan. Third, lenders that operate peer-to-peer (P2P) lending platforms or crowd-funding platforms may require authorisation from the Securities and Exchange Commission (SEC Nigeria) under the SEC Rules and Regulations 2013 (as amended) and the SEC Crowdfunding Rules 2021. Fourth, the Corporate Affairs Commission (CAC) must have issued a Certificate of Incorporation under the Companies and Allied Matters Act 2020 (CAMA 2020) to the lending company before it commences operations. Digital lenders are also required to comply with the Nigeria Data Protection Regulation (NDPR) 2019, supervised by the Nigeria Data Protection Commission (NDPC), when collecting and processing borrowers' personal data, and must file annual data protection audit reports with the NDPC.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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