A Federal High Court has upheld Nigeria’s digital lending regulations while drawing a firm line on regulatory authority, ruling that the Federal Competition and Consumer Protection Commission (FCCPC) cannot licence telecommunications operators or regulate airtime lending services.
The judgment, delivered on Monday by Justice Ambrose Lewis-Allagoa in Suit No. FHC/L/CS/760/2026, dismissed a case filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which sought to invalidate the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
While affirming the validity of the lending rules, the court agreed that the FCCPC overstepped its bounds by attempting to extend its authority into telecommunications licencing, a function reserved strictly for the Nigerian Communications Commission (NCC).
The ruling goes beyond a regulatory dispute, directly impacting Nigeria’s fast-growing airtime and data credit market, estimated to serve over 40 million users and valued between ₦300 billion and ₦400 billion annually. These services have become essential for millions of Nigerians who rely on airtime advances to stay connected.
Regulatory uncertainty earlier this year disrupted the sector. In April 2026, major telecom operators, including MTN, Airtel, and Globacom, suspended airtime and data credit services after the FCCPC classified them as digital loans under its new regulations. Operators cited compliance risks due to unclear oversight boundaries.
The situation escalated when WASPAN secured an interim court injunction halting enforcement of the regulations. This led the FCCPC to temporarily suspend implementation, allowing operators to resume services while the case was ongoing.
Monday’s ruling lifts that uncertainty but introduces a new challenge forcing both the FCCPC and NCC to clearly define how they will jointly regulate the overlapping space between digital finance and telecommunications.
Reacting to the judgment, the FCCPC welcomed the decision, stating that it clears the way for full enforcement of its digital lending framework. The Commission reiterated its commitment to consumer protection and adherence to the rule of law.
However, the court made it clear that such authority has limits. It ruled that the FCCPC’s role in competition and consumer protection must coexist with, not override, the NCC’s statutory powers.
In a key pronouncement, Justice Lewis-Allagoa stated that “concurrency means coexistence, not displacement,” reinforcing that while both regulators have roles, their mandates must remain distinct.
The court also clarified that the FCCPC lacks the legal authority to issue telecommunications licences and that nothing in the DEON Regulations establishes such a framework.
The judgment raises fresh questions about earlier approvals granted by the FCCPC to five companies to operate airtime and data credit services under the DEON framework, as licencing authority lies solely with the NCC.
WASPAN described the outcome as a mixed result, noting that although its attempt to nullify the regulations failed, the court validated its position on licencing limits. The association signalled that further legal action on the matter may still emerge.
Industry stakeholders have largely welcomed the decision, viewing it as a long-overdue clarification of regulatory roles. Telecom operators are now calling for clear coordination between both agencies to prevent future disruptions.
The President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the ruling provides critical direction for the industry, emphasizing the need for collaboration between regulators.
He warned that without a defined framework, the sector risks another round of uncertainty that could affect millions of users who depend on airtime credit services daily.
The ruling also reinforces the need for regulatory discipline, especially following the Presidential Enabling Business Environment Council’s directive requiring impact assessments before major policy changes.
Ultimately, the decision strengthens the FCCPC’s authority over consumer protection in digital lending while reaffirming that sector-specific regulators like the NCC retain exclusive control over their domains, even as technological convergence continues to blur traditional boundaries.
Source: TechCabal
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