Court halts FCCPC digital lending rules, restores airtime credit services nationwide

The Federal High Court has issued interim injunctions suspending the enforcement of controversial digital lending regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC), effectively restoring airtime lending and related services across the country.

The rulings, delivered in Lagos and Abuja, offer temporary relief to Value Added Service (VAS) providers and telecom operators affected by the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations introduced by the FCCPC in 2025.

In Lagos, Justice A. Lewis-Allagoa on April 15, 2026, granted four interim injunctions in suit No. FHC/L/CS/760/2026 filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against the FCCPC.

The court restrained the commission, its officers and agents from enforcing the DEON Regulations, including key provisions of the framework. It also barred the FCCPC from interfering with the operations of WASPA members, imposing sanctions or fines for alleged non-compliance, or issuing enforcement directives linked to the regulations.

The matter was adjourned to April 27, 2026, for further hearing.

In a related development, the Federal High Court in Abuja on April 24, 2026, granted an interim order in suit No. FHC/ABJ/CS/779/2026 following an ex parte application by Nairtime Holdings Limited and Nairtime Nigeria Limited against MTN Nigeria Communications Plc and Airtel Networks Limited.

The court restrained both telecom operators, their officers and agents from suspending, restricting or interfering with Nairtime Nigeria Limited’s access to their platforms, including short codes, SMS, USSD and billing services.

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The order applies for the duration of Nairtime’s valid licence issued by the Nigerian Communications Commission (NCC) and prevents the operators from relying on the FCCPC regulations as grounds for disrupting services.

The applicants had argued that the planned suspension of services stemmed from directives tied to the DEON Regulations, despite their compliance with contractual obligations and without any established breach or prior notice.

The court held that sufficient grounds existed to grant interim relief pending the determination of the substantive case.

Together, the two rulings effectively put the enforcement of the DEON Regulations on hold, creating a temporary legal framework that allows airtime lending and related digital credit services to continue.

The DEON Regulations, introduced by the FCCPC in July 2025, were designed to extend regulatory oversight to unsecured digital lending services, including airtime and data credit offerings.

However, the move sparked strong opposition from industry stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria (ALTON).

The group argued that the regulations encroached on the statutory mandate of the NCC, created overlapping compliance obligations, and conflicted with an existing memorandum of understanding between both regulatory bodies.

ALTON had earlier warned that unresolved jurisdictional conflicts between the FCCPC and NCC could disrupt telecommunications services and unsettle the digital lending market.

While the interim orders provide immediate relief for operators and millions of consumers who rely on airtime credit services, the final outcome will depend on the substantive suits before the courts.

The decisions will ultimately determine the extent of the FCCPC’s authority over digital lending activities within Nigeria’s telecommunications sector.