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The debate over the regulation of digital lending services has intensified calls for stronger coordination among government agencies, with industry leaders, regulators and policymakers arguing that a clear and predictable framework is essential to protect consumers while sustaining innovation and investment in Nigeria’s fast-growing digital economy.
The renewed focus follows the recent judgment of the Federal High Court in Lagos on the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-traditional Consumer Lending (DEON) Regulations, as well as the subsequent Notice of Appeal filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), ensuring that key regulatory questions remain before the courts.
Speaking on the broader need for policy alignment across the digital economy, the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, stressed that effective collaboration among regulators is critical to Nigeria’s long-term digital ambitions.
“Regulatory coordination is not only essential to preserving legal certainty but is also fundamental to promoting investment, innovation, consumer confidence and Nigeria’s long-term competitiveness as Africa’s leading digital economy,” Tijani said.
The minister also directed that the existing regulatory framework should remain in place while cross-cutting digital economy issues are being harmonised.
“The existing regulatory status quo shall be maintained with respect to matters relating to Internet platforms, online intermediaries and other cross-cutting digital economy issues currently undergoing inter-agency policy harmonisation under the Ministry’s coordination,” he stated.
The issue gained prominence earlier this year following disagreements over the application of the DEON Regulations to Airtime Credit Services, a widely used telecom value-added service relied upon by millions of prepaid subscribers. The regulatory uncertainty led to a temporary disruption of airtime and data credit services before they were restored following legal developments.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the episode demonstrated that the service had become an essential part of Nigeria’s digital economy.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” he said.
Reacting to the court’s judgment, Adebayo said the decision had clarified the complementary responsibilities of the country’s two principal regulators.
“The court has done something important. It has confirmed the FCCPC’s authority and, in the same breath, affirmed that the NCC’s role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court’s reasoning requires,” the ALTON chairman stated.
He added: “Forty million Nigerians depend on these services. The court has made clear that both regulators have a role. The industry is asking them to define how that works before any action that could disrupt access again.”
The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, has consistently maintained that Airtime Credit Services fall within the Commission’s statutory oversight of telecommunications value-added services.
“Airtime credit falls under telecom value-added services governed by the Communications Act, and not consumer lending,” Maida said during an NCC press briefing in April.
On its part, the FCCPC has maintained that the DEON Regulations were introduced to strengthen consumer protection in Nigeria’s digital lending market.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers, or the rule of law,” the Commission said.
The legal contest is far from over. WASPAN has filed a Notice of Appeal against the Federal High Court judgment, asking the Court of Appeal to review aspects of the decision relating to the respective regulatory roles of the FCCPC and the NCC in technology-enabled credit services.
Court filings by the association argued that, unless FCCPC is restrained, its members would continue to face “regulatory uncertainty, exposure to sanctions, and disruption of their lawful business activities.”
WASPAN also warned that enforcement of the DEON Regulations could have “grave consequences” for businesses operating within the telecom-fintech ecosystem.
Industry estimates value Nigeria’s Airtime Credit Services market at between ₦300 billion and ₦400 billion annually, with about 40 million subscribers relying on the service. Analysts say those figures underscore the importance of regulatory certainty as digital financial services become increasingly integrated with telecommunications infrastructure.
Among the technology companies supporting the ecosystem is Nairtime Nigeria Limited, which provides the technology platform that enables Airtime Credit Services offered by mobile network operators. The company also supports other digital financial solutions through automated credit assessment and repayment technology, contributing to broader financial inclusion efforts.
Chief Executive Officer of Airtime Nigeria and Chief Commercial Officer of Optasia, Uchenna Agbo, said the widespread adoption of Airtime Credit Services reflects their growing importance to consumers.
“Airtime Credit Services are a lifeline for millions of Nigerian consumers who rely on them for daily connectivity. The widespread adoption of airtime credit reflects its importance to millions of consumers,” Agbo said.
She added: “Fair financial access is at the heart of our business, and we are committed to working constructively with regulators and our partners as the legal process unfolds to promote a fair, transparent, and inclusive digital ecosystem that benefits Nigeria and all Nigerians.”
Industry observers say the convergence of telecommunications and digital finance has made collaboration among regulators increasingly important.
They argue that while consumer protection remains essential, policy certainty, clearly defined institutional responsibilities and sustained dialogue between regulators and industry participants will be crucial to unlocking further growth in digital credit services, encouraging investment and ensuring millions of Nigerians continue to benefit from secure, innovative and accessible financial solutions.
