Airtel, Glo Restore Airtime Lending Services After FCCPC Suspends Controversial Rules

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Millions of Nigerian mobile subscribers can once again borrow airtime and data. Airtel and Globacom have resumed their lending services after the Federal Competition and Consumer Protection Commission (FCCPC) suspended controversial regulations.

The suspension follows weeks of uncertainty. Major telecom operators had halted airtime and data credit offerings amid a regulatory dispute over whether these services should be classified as digital loans.

Subscribers can now access products like Globacom's 'Borrow Me Credit' service and other airtime advance options. Many Nigerians rely on these services during emergencies and temporary cash shortages.

Court Order Paves Way for Resumption

The FCCPC announced on May 22 that it had suspended enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025. This followed an interim order from the Federal High Court in Lagos.

Justice A.L. Allagoa had restrained the commission from implementing the regulations. The order came after a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN). The court action paused the rules and allowed telecom operators to reactivate their suspended lending platforms.

Ayo Stuffman, Chairman of WASPAN, confirmed the restoration. He said Airtel and Glo had already resumed the affected services. He expressed confidence that MTN would soon follow based on the FCCPC's latest position.

Independent checks showed that both Airtel and Globacom have relisted airtime lending services on their platforms.

The Dispute Over Classification

The controversy erupted after the FCCPC expanded the scope of its DEON Regulations to include telecom airtime and data credit services. Under the framework, telecom operators offering deferred-payment airtime or data bundles would be treated as lenders. They would need to comply with registration, disclosure, and consumer protection obligations similar to those imposed on digital loan providers.

The move sparked resistance from telecom operators, value-added service providers, and industry stakeholders. They argued that airtime advances are fundamentally different from traditional loans.

WASPAN maintained that airtime credit operates as a telecom value-added service already regulated by the Nigerian Communications Commission (NCC). It should not be subjected to a separate lending regime. According to the association, classifying airtime credit as a conventional loan creates unnecessary regulatory overlap and could disrupt essential communication services.

The regulatory standoff forced operators, including MTN, Airtel, and Globacom, to suspend airtime credit services in April to avoid possible sanctions. The suspension disrupted a market estimated to handle hundreds of billions of naira annually. It affected millions of Nigerians, particularly low-income subscribers who depend on small airtime advances to stay connected when funds are unavailable.

Industry stakeholders warned that extending loan-app regulations to telecom services could increase compliance costs and create operational challenges for operators.

Legal Battle Continues

Although services have resumed, the broader dispute is far from over. The FCCPC has indicated its intention to challenge the court order and continue pursuing its case. The commission said it has instructed its legal team to contest both the ruling and the competence of the suit.

Telecom operators and industry groups are expected to push for a harmonised regulatory framework between the FCCPC and the NCC. This would clarify how airtime and data credit services should be treated going forward.

For now, the return of airtime lending services offers immediate relief to millions of Nigerians who depend on them to stay connected during financial emergencies. The outcome of the legal battle will ultimately determine whether those services remain available under the current model or become subject to stricter lending regulations.

Nigerian banks are also making a strong entry into this market. Financial institutions including GTBank, Access Bank, UBA, Zenith Bank, FirstBank, and FCMB are using their USSD platforms to provide instant airtime and data loans directly to customers. They offer cheaper rates, easier repayment plans, and stronger consumer protection.

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