FCCPC Suspends DEON Regulations 2025 After Court Order, Telecoms Restore Airtime Credit

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The Federal Competition and Consumer Protection Commission (FCCPC) has suspended the implementation of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025, commonly known as the DEON Regulations. The suspension follows a Federal High Court order that halted enforcement pending ongoing legal proceedings.

In a statement signed by Ondaje Ijagwu, Director of Corporate Affairs, the FCCPC said it acted in obedience to the court order. The Commission stated it was served with an ex-parte order from the Federal High Court in Lagos restraining the implementation of the regulations. As a law-abiding institution, it suspended enforcement in deference to the rule of law.

The regulations had been challenged in court by the Wireless Application Service Providers Association of Nigeria (WASPAN) in Suit No. FHC/L/CS/760/2026. The FCCPC indicated it would continue to contest both the court order and the competence of the suit. The Commission has instructed its solicitors to challenge the order.

ALTON Welcomes Suspension, Services Return

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) welcomed the decision. ALTON Chairman Gbenga Adebayo said the FCCPC's action restores clarity and regulatory certainty. He commended the Commission for acting in the interests of Nigerian consumers and the telecommunications industry.

Adebayo explained that suspending the DEON regulations as they apply to telecom services recognises that the Nigerian Communications Commission (NCC) is the appropriate primary regulator for these products. He said that recognition matters enormously for industry stability and investor confidence.

The decision ends weeks of disruption that left an estimated 40 million active users without access to airtime and data credit services. These services are widely used by low-income and prepaid subscribers. Industry estimates put the annual airtime credit market at between N300 billion and N400 billion.

The market was effectively frozen in early April after MTN Nigeria, Airtel Nigeria, Globacom and T2mobile suspended their services. The suspension followed an FCCPC enforcement directive requiring immediate compliance with the DEON framework. The FCCPC had classified airtime credit as consumer lending, bringing it under regulations designed for digital loan applications.

Jurisdictional Dispute and Court Orders

The move triggered a jurisdictional dispute with the NCC, which regulates telecommunications under the Nigerian Communications Act 2003. The dispute moved to the courts. The Federal High Court in Lagos granted an interim injunction on April 15 restraining the FCCPC from enforcing the regulations against WASPAN members. A separate Federal High Court order in Abuja on April 24 restrained MTN and Airtel from interfering with licensed value-added service providers' access to telecom platforms. The FCCPC's attempt to set aside the Lagos injunction was unsuccessful.

Airtel became the first major operator to restore airtime credit services. Globacom followed shortly afterwards. Adebayo said the episode highlighted the critical role airtime credit plays in Nigeria's economy. He described it as economic infrastructure used by approximately 40 million people at the base of the economy. Removing that infrastructure, even temporarily, had consequences beyond the telecom sector.

MTN Still Waiting for Legal Clarity

Attention has shifted to MTN Nigeria, the country's largest mobile operator with more than 95 million subscribers. MTN is yet to restore its airtime advance services. Tobechukwu Okigbo, MTN Nigeria's Chief Corporate Services and Sustainability Officer, said the operator requires additional legal clarity. He stated during the company's earnings call that two conditions are needed: a court ruling setting aside the regulations empowering the FCCPC to license, or a clear directive instructing the company to reinstate the service.

Industry observers note that with Airtel and Globacom already back, pressure is on MTN to restore access for millions of subscribers.

Call for Better Regulatory Coordination

Looking ahead, ALTON called for closer coordination between the FCCPC and the NCC to avoid similar conflicts. Adebayo said Nigeria's regulatory agencies need formal coordination protocols for services at the intersection of telecommunications and financial products. He stated that the FCCPC's consumer protection mandate and the NCC's telecom regulatory mandate can coexist without displacing each other. ALTON is ready to participate in that conversation and urged both agencies to begin it without delay.

The Federal Government has since approved additional companies to provide airtime and data borrowing services. The new list from the FCCPC shows nine companies now cleared to operate these services nationwide.

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