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Millions of Nigerian telecom subscribers may know the future of airtime lending services on Monday, July 20, when the Federal High Court in Lagos delivers judgment in a suit challenging the regulatory framework governing airtime and data credit services in the country.
Justice Ambrose Lewis-Allagoa is expected to rule on the suit marked FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria (WASPAN) against the Federal Competition and Consumer Protection Commission (FCCPC) over its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
The judgment will determine whether the FCCPC has the legal authority to regulate telecommunications-based Value Added Services (VAS), including airtime and data lending, or whether such services fall exclusively under the regulatory mandate of the Nigerian Communications Commission (NCC) pursuant to the Nigerian Communications Act, 2003.
The case has attracted attention from telecom operators, regulators and millions of subscribers who rely on airtime borrowing services, particularly small business owners, artisans, students, transport operators and other users who depend on emergency credit facilities.
In the suit filed by Senior Advocate of Nigeria (SAN), Kemi Pinheiro, WASPAN is asking the court to declare that the FCCPC’s DEON Regulations 2025 do not apply to licensed Value Added Service providers already operating under the regulatory supervision of the NCC.
The association argued that telecom-based airtime and data credit services are part of the telecommunications ecosystem and should remain under the oversight of the NCC.
WASPAN is also seeking an order restraining the FCCPC from enforcing the disputed regulations against its members, imposing sanctions on them or interfering with their operations based on the framework.
The association further argued that the regulations were introduced without sufficient stakeholder engagement, coordination with the NCC and the required regulatory impact assessment.
The dispute followed the FCCPC’s enforcement of the DEON framework, which led some major telecom operators, including MTN, Airtel and Globacom, to temporarily suspend airtime borrowing services such as MTN XtraTime.
The suspension affected millions of subscribers who depended on the services for emergency airtime credit before the court granted an interim order stopping enforcement of the regulations pending the determination of the substantive suit.
Following the interim order, the FCCPC announced the suspension of enforcement of the regulations, while telecom operators restored airtime lending services.
The matter later generated further legal arguments after WASPAN alleged that the FCCPC acted contrary to the court’s interim order by granting approvals to some operators under the disputed regulatory framework.
The court subsequently commenced contempt proceedings and issued a Form 45 Notice of Consequences of Disobedience to Court Order against FCCPC Executive Vice Chairman, Tunji Bello.
The FCCPC, however, maintained that it complied with the court’s directive by suspending enforcement of the regulations pending the final determination of the case.
Supporting WASPAN’s position, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argued that airtime credit services should not be treated as conventional lending products.
ALTON Chairman, Gbenga Adebayo, said airtime credit had become an important digital service relied upon by millions of Nigerians, particularly low-income subscribers.
He warned that disruption of the service could affect an ecosystem estimated at between ₦300 billion and ₦400 billion annually, with possible implications for investment and market stability.
The FCCPC, on its part, has maintained that its consumer protection mandate covers activities across various sectors, arguing that airtime borrowing involves a form of consumer credit and therefore falls within its regulatory responsibility under the Federal Competition and Consumer Protection Act, 2018.
The commission said the DEON Regulations were designed to promote transparency, protect consumers from unfair practices and strengthen standards within Nigeria’s digital lending space.
The judgment on July 20 is expected to clarify the boundaries of regulatory powers between the FCCPC and the NCC and determine the future direction of airtime and data credit services in Nigeria.
