FCCPC boss faces contempt as court battle over digital lending rules escalates
By Aboki Forex —
The legal fight over Nigeria’s airtime and data lending services has taken a dramatic turn. A Federal High Court in Lagos has initiated contempt proceedings against the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Mr Tunji Bello.
The court action follows allegations that the FCCPC violated an earlier order. That order restrained the agency from enforcing controversial digital lending regulations targeting telecom-based credit services.
Court documents in Suit No: FHC/L/CS/760/2026 show that Justice Ambrose Lewis-Allagoa issued a Form 49 notice. The notice directs Bello to appear before the court on May 22, 2026. It was filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against the FCCPC.
The notice is titled “Notice to Show Cause Why Order of Committal Should Not Be Made.” It warns that Bello could face imprisonment if found guilty of contempt for allegedly disobeying the court’s April 15 restraining order.
The proceedings were directed personally at Bello at the FCCPC headquarters in Abuja. This signals a serious escalation in the dispute between telecom service providers and the consumer protection agency.
What sparked the clash
The controversy stems from the FCCPC’s Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations 2025. The rules were introduced to regulate Nigeria’s fast-growing digital credit industry, including airtime and data lending services.
The regulations impose stricter compliance requirements on operators. They cover loan disclosures, debt recovery methods, and consumer data protection.
FCCPC defended the framework as necessary to tackle widespread abuses in the digital lending market. The agency cited thousands of consumer complaints linked to loan apps and credit platforms.
But telecom operators and service providers argue that parts of the regulations cross into areas reserved for the Nigerian Communications Commission (NCC).
The disagreement quickly disrupted telecom services. MTN Nigeria suspended its Xtratime airtime lending service after raising concerns over compliance obligations tied to the regulations.
WASPA then approached the Federal High Court. It argued that the FCCPC lacked the legal authority to regulate the technical structure and activation systems of telecom-based lending products.
Regulation 24 at the centre
At the heart of the dispute is Regulation 24 of the DEON framework. Critics say it interferes directly with telecommunications operations rather than consumer protection.
Justice Lewis-Allagoa had earlier granted an interim injunction. It restrained the FCCPC from enforcing the regulations or penalising WASPA members pending the determination of the case.
Despite the order, WASPA alleged that the FCCPC continued actions linked to enforcement of the regulations. That prompted the contempt proceedings now facing Bello.
Legal analysts say the case could redefine the boundaries between consumer protection oversight and telecom regulation in Nigeria. The outcome is also expected to shape the future of airtime and data credit services. Millions of Nigerians rely on these services daily for communication and emergency access.
In a related development, Legit.ng earlier reported that the Federal High Court in Lagos refused a fresh application by the FCCPC to lift the interim injunction. The decision is seen as a major relief for mobile service providers offering airtime lending, data advances, and other digital consumer credit services across Nigeria.