More than 40 million Nigerians who depend on airtime borrowing services for daily communication could face another disruption as a legal battle over regulatory oversight of the country’s telecom-based lending ecosystem moves to the Court of Appeal.
The warning comes from the Wireless Application Service Providers Association of Nigeria (WASPAN), which is seeking an injunction to prevent the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 pending the determination of its appeal.
The dispute follows a July 20 judgment by the Federal High Court in Lagos, which upheld the FCCPC’s authority to issue and enforce the regulations. WASPAN filed a notice of appeal the following day, arguing that immediate enforcement before the appellate court rules could disrupt services, expose operators to sanctions, and create uncertainty across the telecommunications industry.
At the heart of the dispute is whether the FCCPC has jurisdiction over telecom-based airtime lending or whether such authority rests exclusively with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.
According to an affidavit sworn by WASPAN Chairman Ayo Stuffman, the association became concerned after the FCCPC announced that the DEON Regulations had become “fully operational and enforceable” following the court judgment.
Stuffman argued that enforcing the regulations before the appeal is heard would undermine operators licensed by the NCC and subject them to overlapping regulatory obligations. He maintained that the association’s members risk regulatory uncertainty, operational disruptions and substantial financial penalties if the FCCPC proceeds with implementation.
Under the DEON Regulations, corporate entities found in breach may face fines of up to ₦100 million or 1% of annual turnover, while company directors may also be subject to regulatory sanctions.
The case has significant commercial implications because Nigeria’s airtime lending market is estimated by industry stakeholders to generate between ₦300 billion and ₦400 billion annually. The service has become an essential liquidity tool for millions of low-income earners, traders, artisans and workers who rely on borrowed airtime and data to remain connected, particularly during periods of financial constraint.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the earlier suspension of airtime lending highlighted the service’s broader economic role.
He argued that airtime credit has evolved beyond a traditional telecom offering into critical digital infrastructure supporting financial inclusion and everyday economic activity for millions of Nigerians.
Subscribers have also expressed concern over the prospect of another interruption. Some users said they rely on airtime advances to access mobile banking, communicate with customers and maintain internet connectivity until they receive income. Others noted that many borrowers immediately repay outstanding airtime loans to qualify for new advances, underscoring the service’s importance to cash-constrained households.
Beyond its immediate impact on consumers and operators, the appeal could establish a landmark precedent on the limits of regulatory authority between the FCCPC and the NCC. A ruling by the Court of Appeal is expected to clarify which agency has primary oversight of telecom-based lending services, with implications for investment, compliance costs and the future development of Nigeria’s fast-growing digital lending ecosystem.
The FCCPC has maintained that the DEON Regulations are designed to strengthen consumer protection, safeguard personal data and eliminate abusive practices by illegal digital lenders while promoting greater accountability across Nigeria’s digital credit market.
