Regulatory War Over Airtime Lending Leaves Millions of Nigerians Stranded
By Aboki Forex —
The Federal Competition and Consumer Protection Commission (FCCPC) introduced the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025. The goal was to tighten consumer protection for digital lenders. Few Nigerians paid attention at the time. But those regulations soon sparked a fierce dispute that cut off airtime and data advances for millions.
How the clash started
By early 2026, telecom industry players raised alarm. Airtime and data lending services could be classified as consumer loans under DEON, not telecom value-added services. That would put them under FCCPC, not the Nigerian Communications Commission (NCC). Operators warned of extra compliance costs and licensing hurdles. Consumers feared the service would become slower, more expensive, or disappear.
Enforcement hits home
As FCCPC enforced DEON, telecoms suspended airtime and data lending. Students lost access to borrowed data for online classes. Small business owners lost a digital lifeline. Market traders, artisans, and ride-hailing drivers could no longer borrow airtime to make urgent calls or complete transactions. A regulatory battle in Abuja became a daily struggle for ordinary Nigerians.
WASPAN fights back
The Wireless Application Service Providers Association of Nigeria (WASPAN) went to court. It argued that airtime lending falls under telecom regulation, not consumer credit. In a major move, the Federal High Court in Lagos granted an interim order stopping FCCPC from enforcing DEON. Services remained suspended for most users.
ALTON joins the fray
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) took the advocacy route. It warned that millions were suffering from a dispute over jurisdiction. The industry adopted a two-pronged strategy: litigation by WASPAN, advocacy by ALTON.
FCCPC defends its position
The FCCPC insisted it never ordered a suspension. It said DEON was meant to improve transparency and consumer protection, not ban airtime lending. But industry players accused the commission of ignoring court orders. The dispute escalated to committal proceedings against FCCPC for alleged disobedience.
The turning point: June 2026
Facing mounting legal pressure, FCCPC suspended DEON enforcement in June 2026. It said it was acting in obedience to the court. Airtel and Glo quickly restored airtime lending services. Millions of their subscribers regained access.
MTN stays cautious
MTN Nigeria remained on the sidelines. The company said regulatory uncertainty still existed and wanted clearer legal backing before restoring XtraTime. As a result, MTN users stayed cut off while competitors offered the service again.
What the court must decide
The eventual ruling will determine whether airtime lending is a telecom service or a consumer loan. It will decide if NCC or FCCPC has primary authority. And it will settle whether telecom-based credit products face the same rules as digital lending apps. For regulators, this is about jurisdiction and consumer protection. For operators, it is about regulatory overlap and compliance burdens. But for millions of Nigerians, it is simple: can they borrow N100 airtime to make an important call or stay connected when cash is tight?
Earlier, Legit.ng reported that the Federal Government approved nine companies to provide airtime and data borrowing services nationwide, even as the court battle continues.