Airtime borrowing at risk for 40 million Nigerians as WASPAN fights FCCPC ruling

More than 40 million Nigerians who rely on airtime borrowing services could face another disruption if the Federal Competition and Consumer Protection Commission (FCCPC) resumes full enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations before the Court of Appeal determines a pending appeal. The Wireless Application Service Providers Association of Nigeria (WASPAN) has warned that the move would disrupt services relied upon by millions of low-income earners, traders, artisans and others in the informal economy.

Legal dispute heads to appeal

The warning is contained in an affidavit deposed to by WASPAN Chairman, Ayo Stuffman, in support of the association's application for an injunction pending appeal against the July 20 judgment of the Federal High Court in Lagos. That judgment upheld the FCCPC's powers to issue and enforce the DEON Regulations. WASPAN filed a notice of appeal on July 21, one day after the judgment, and is asking the court to restrain the FCCPC from implementing the regulations until the appeal is determined.

The suit, marked FHC/L/CS/760/2026, centres on whether the FCCPC has the legal authority to regulate telecommunications-based airtime lending services or whether that responsibility rests exclusively with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003. The airtime lending ecosystem at the centre of the dispute is estimated by industry stakeholders to be worth between N300 billion and N400 billion annually.

FCCPC pushes ahead

According to Stuffman's affidavit, the association became concerned after the FCCPC announced in a press statement issued shortly after the judgment that implementation of the DEON Regulations had resumed. The commission stated: 'The Federal Competition and Consumer Protection Commission (FCCPC) has resumed implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations). Accordingly, the legal impediment that had necessitated the Commission's temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable.'

In the affidavit, Stuffman argued that enforcing the regulations before the appeal is heard could expose WASPAN's members to sanctions, create regulatory uncertainty and disrupt airtime lending services relied upon by millions of subscribers. He also contended that the association's members were already being constrained in their operations under the NCC's regulatory framework through what he described as the FCCPC's additional requirements relating to approvals, partnerships and service agreements. Allowing the FCCPC to proceed before the appeal could undermine the reliefs being sought and effectively render the appeal academic.

The affidavit further disclosed that Senior Advocate of Nigeria, Chukwudi Enebeli, counsel to WASPAN, advised that the appeal raises 'substantial, weighty, arguable and recondite issues of law' regarding the scope of the FCCPC's regulatory powers over the telecommunications sector. WASPAN argued that preserving the status quo pending the appeal was necessary to avoid another disruption to airtime borrowing services across the country.

Background of the regulatory clash

The regulatory disagreement previously resulted in the temporary suspension of airtime borrowing services by major mobile network operators before the Federal High Court granted interim relief, allowing the services to resume pending determination of the substantive suit. Earlier in the proceedings, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) had maintained that airtime credit is not a conventional financial product but critical communications infrastructure that enables millions of Nigerians to remain connected, particularly during emergencies.

Responding after the July 20 judgment, the FCCPC maintained that it would continue implementing the regulations in line with the court's decision. The Commission's Director of Corporate Affairs, Ondaje Ijagwu, said: 'The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance.' He added: 'Now that the Court has affirmed the validity of the DEON Regulations, the Commission will continue to discharge its statutory responsibilities faithfully, professionally and in accordance with the law.'

The Court of Appeal is expected to determine whether the High Court judgment should stand and whether the FCCPC can continue enforcing the regulations while the appeal is pending. In a related development, MTN Nigeria reinstated its airtime and data borrowing service, giving eligible subscribers access to emergency credit again after a temporary suspension caused by the regulatory disagreement. The telecom operator said qualified customers can borrow airtime or data by dialling *303#, subject to their approved credit limits.

What this means for consumers and the naira

For the 40 million Nigerians who depend on airtime borrowing — many of them low-income workers in the informal economy — any prolonged disruption would cut off a vital lifeline for phone calls, data and mobile payments. The N300 billion to N400 billion ecosystem supports millions of small transactions daily. Regulatory clarity from the Court of Appeal will determine whether this service stabilises or faces repeated shutdowns, with knock-on effects on digital inclusion and economic activity across the country.