Millions of Nigerian telecom subscribers will know the future of airtime lending services on Monday, July 20, when Justice Ambrose Lewis-Allagoa of
the Federal High Court in Lagos delivers judgment in a case that could redefine the regulation of airtime and data credit services in the country.
The suit, marked FHC/L/CS/760/2026, was filed by the Wireless Application Service Providers Association of Nigeria (WASPAN) against the Federal Competition and Consumer Protection Commission (FCCPC), challenging the commission’s Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
The case is expected to determine whether the FCCPC has the legal authority to regulate telecommunications-based Value Added Services (VAS), including airtime and data lending, or whether such services fall exclusively under the Nigerian Communications Commission (NCC) in line with the Nigerian Communications Act, 2003.
The proceeding in the suit is being closely monitor by telecommunications operators, regulators and an estimated 40 million subscribers who depend on airtime borrowing services, particularly traders, artisans, transport operators, students and other low-income earners who rely on emergency airtime credit.
In the substantive suit, filed by Senior Advocate of Nigeria (SAN) Kemi Pinheiro, WASPAN is asking the court to declare that the FCCPC exceeded its statutory powers by attempting to regulate telecommunications-based Value Added Services already supervised by the NCC.
The association is also seeking an order declaring that the DEON Regulations 2025 cannot lawfully apply to licensed Value Added Service providers operating under the NCC’s regulatory framework.
Among other reliefs, the plaintiffs want the court to issue a perpetual injunction restraining the FCCPC from enforcing the regulations against its members, imposing administrative sanctions or interfering with their operations under the disputed framework.
WASPAN further urged the court to invalidate the regulations, arguing that they were introduced without adequate stakeholder consultation, coordination with the NCC or the mandatory Regulatory Impact Assessment.
The dispute followed the FCCPC’s enforcement of the DEON framework, which prompted major telecommunications operators, including MTN, Airtel and Globacom, to suspend airtime borrowing services such as MTN XtraTime.
The suspension temporarily denied about 40 million subscribers access to emergency airtime credit before the court granted an interim injunction restraining enforcement of the regulations pending the determination of the substantive suit.
Following the court order, the FCCPC suspended enforcement of the regulations, paving the way for operators to restore airtime lending services nationwide.
The legal battle also triggered contempt proceedings after WASPAN accused the FCCPC of violating the court’s interim order by allegedly granting approvals to new operators under the disputed regulations.
Justice Ambrose Lewis-Allagoa subsequently commenced committal proceedings and issued a Form 45 Notice of Consequences of Disobedience to Court Order against FCCPC Executive Vice Chairman, Tunji Bello.
The FCCPC has, however, maintained that it complied with the court’s directive by suspending enforcement of the regulations pending the final judgment.
Supporting WASPAN’s position, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argued that airtime credit should not be treated as a conventional financial product.
ALTON Chairman, Gbenga Adebayo, said the experience demonstrated that airtime credit serves as critical economic infrastructure used regularly by approximately 40 million Nigerians, most of whom belong to low-income groups.
He warned that the regulatory action threatened an ecosystem valued at between ₦300 billion and ₦400 billion annually, with potential implications for investor confidence and market stability.
The FCCPC, however, insists that its consumer protection mandate extends across all sectors, arguing that airtime borrowing constitutes a consumer micro-loan and therefore falls within its regulatory powers under the Federal Competition and Consumer Protection Act, 2018.
According to the commission, the DEON Regulations were introduced to protect consumers from exploitative lending practices, improve transparency and strengthen data privacy standards in Nigeria’s digital lending ecosystem.
