The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed claims circulating in some newspapers and on social media alleging that it cancelled or banned airtime borrowing and data advance services in Nigeria.
In a statement issued by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission described the reports as false and misleading, stressing that it has not prohibited airtime borrowing or data advance services, nor issued any directive preventing consumers from accessing lawful telecommunications value-added services.
The FCCPC explained that following a surge in consumer complaints — including allegations of opaque charges, unexplained deductions, aggressive recovery tactics, poor disclosure standards and weak accountability in segments of the digital lending and advance-services market — it introduced the DEON Consumer Lending Regulations in July 2025.
According to the Commission, the regulations were designed to curb the excesses of abusive service providers whose practices had caused persistent consumer harm and eroded public confidence in the market.
The framework mandates proper registration of service providers, responsible lending practices, clear disclosure of fees and terms, accessible complaint resolution channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight.
In the telecommunications sector, the FCCPC said its investigations revealed that some operators engaged in exclusionary third-party technical arrangements in violation of the Federal Competition and Consumer Protection Act.
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The new regulations, it noted, were intended to open up the market to local participants alongside foreign partners, in line with fair competition and free market principles.
“These measures are designed to reduce abusive practices, improve transparency, strengthen consumer choice, and encourage responsible innovation by legitimate operators,” the Commission stated.
The FCCPC further alleged that certain vested interests and their foreign collaborators have opposed efforts to establish safer markets and fair competition, resulting in what it described as a campaign of disinformation.
Providing a timeline of its regulatory engagement, the Commission disclosed that when the framework commenced in July 2025, affected operators were granted a 90-day compliance window to regularise their products and operational structures.
When compliance was not achieved within that period, particularly in the telecom sector, the deadline was extended to January 5, 2026.
Despite the extension, the Commission said some operators failed to complete the necessary registration and regularisation steps, opting instead to maintain existing operational models that had attracted long-standing consumer complaints relating to charges, deductions, and transparency.
The FCCPC emphasised that any temporary suspension or operational change in airtime borrowing or data advance services should be understood as a business or compliance decision taken by service providers, not a regulatory ban.
“It is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply,” the statement read.
The Commission advised Nigerians to disregard false narratives linking service interruptions to consumer protection regulations, reaffirming its commitment to protecting consumers, promoting fair competition, encouraging responsible innovation, and ensuring transparent digital financial practices.
The FCCPC also pledged to continue working collaboratively with sector regulators and service providers in the broader public interest.