An estimated 40 million Nigerians who rely on airtime credit services could benefit from greater regulatory certainty after the Federal High Court in Lagos clarified the respective roles of the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) in overseeing the sector.
In a judgment delivered in Suit No. FHC/L/CS/760/2026, Justice Ambrose Lewis-Allagoa upheld the validity of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025, ruling that the FCCPC acted within its statutory powers to regulate competition and consumer protection.
Landmark ruling offers regulatory certainty for subscribers.
The court, however, drew a clear boundary around the Commission’s authority, holding that the FCCPC lacks the power to issue telecommunications licences and affirming that the NCC remains the regulator responsible for licensing companies in the telecommunications sector. It also held that nothing in the DEON Regulations creates a telecommunications licensing regime.
The ruling comes months after enforcement of the DEON Regulations contributed to the temporary suspension of airtime credit services before they were restored. The airtime credit market is estimated to be worth between ₦300 billion and ₦400 billion annually.
WASPAN hails licensing clarification, weighs appeal
Reacting to the judgment, the Wireless Application Service Providers Association of Nigeria (WASPAN) said the court’s finding on licensing powers validated one of its central arguments throughout the case.
“This is a finding of considerable importance. It directly validates one of WASPAN’s core positions throughout this dispute: that the FCCPC was overreaching the boundaries of its mandate, and that the NCC is and remains our primary regulator,” the association said.
Although the court dismissed WASPAN’s substantive challenge to the DEON Regulations, it also dismissed the FCCPC’s preliminary objection, holding that WASPAN had served a valid pre-action notice, disclosed a reasonable cause of action and acted under genuine fear in approaching the court.
WASPAN said it is reviewing the judgment with its legal team to determine its next steps, including the possibility of an appeal.
Industry urges FCCPC, NCC to work together
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) welcomed the judgment, saying it provides much-needed clarity on how the FCCPC and NCC should coordinate regulation of airtime credit services.
“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,” ALTON Chairman, Gbenga Adebayo, said.
Calling for greater collaboration between both regulators, Adebayo warned against actions that could disrupt services relied upon by millions of Nigerians.
“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,” he said.
The judgment is expected to shape future oversight of airtime and data credit services, with industry stakeholders hoping the clarified regulatory boundaries will prevent further disruptions to services used by millions of subscribers.
