Nigeria’s telecommunications sector has received a major boost after the Federal High Court ordered the immediate restoration of airtime lending services, temporarily blocking the enforcement of controversial lending regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
The ruling affects leading telecom operators including MTN Nigeria Communications Plc and Airtel Networks Limited, ensuring that millions of Nigerians can continue accessing airtime credit services.
Why the Court Stopped FCCPC Regulations
The FCCPC had introduced the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations in 2025 to regulate digital lending, including airtime and data credit.
However, telecom and fintech stakeholders argued that:
- The rules overlap with the authority of the Nigerian Communications Commission (NCC)
- They create double regulation and compliance burdens
- They risk disrupting telecom services nationwide
These concerns triggered multiple lawsuits across Nigeria.
Lagos Court Ruling: Protection for VAS Providers
In Lagos, Justice A. Lewis-Allagoa granted interim injunctions in a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPA).
The court:
- Restrained the FCCPC from enforcing the DEON regulations
- Barred sanctions, fines, or operational interference against VAS providers
- Ordered a pause on regulatory actions pending further hearing
This ruling protects companies providing airtime lending and other digital services.
Abuja Court Ruling: MTN, Airtel Must Comply
In a separate ruling in Abuja, the court sided with Nairtime Holdings Limited and Nairtime Nigeria Limited.
The court ordered that:
- MTN and Airtel must not suspend or restrict airtime lending services
- Telecom operators must restore access to USSD, SMS, short codes, and billing systems
- Operators cannot rely on FCCPC regulations to justify disruptions
The order remains valid as long as Nairtime operates under its NCC-issued licence.
Industry Reaction and Regulatory Conflict
The dispute highlights a growing power struggle between regulators.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) had earlier warned that:
- FCCPC’s regulations encroach on NCC’s jurisdiction
- Conflicting rules could destabilize the telecom ecosystem
- Consumers could ultimately bear the cost of regulatory uncertainty
What This Means for Nigerians
For now, the court decisions mean:
- Airtime borrowing services will continue uninterrupted
- Telecom users can still access emergency credit
- Digital lending operators can function without immediate regulatory pressure
However, this is only a temporary legal relief.
What Happens Next?
The rulings are interim orders, not final judgments. The courts will still decide:
- Whether the FCCPC has authority over telecom-based lending
- How digital lending should be regulated in Nigeria
- The long-term framework governing airtime credit services
Until then, telecom operators and service providers must comply with the court’s directives and maintain normal operations.
