Court Rules FCCPC Can Regulate Airtime Lending but Cannot Issue Licences
- A Federal High Court in Lagos delivered a landmark judgment on Monday clarifying how two major regulators share authority over airtime lending
- Justice Ambrose Lewis-Allagoa ruled on the FCCPC's DEON Regulations 2025, raising questions about five companies already approved under the framework
- ALTON chairman Gbenga Adebayo called for a formal coordination framework between the FCCPC and NCC after the ruling
The Federal High Court in Lagos has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) has the legal authority to regulate airtime and data credit services, but cannot issue licences to telecommunications operators.
Justice Ambrose Lewis-Allagoa delivered the judgment on Monday in Suit No. FHC/L/CS/760/2026, drawing a clear boundary between the powers of the FCCPC and those of the Nigerian Communications Commission (NCC) in the airtime lending market.
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What the court decided
The court found that the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations 2025 fall within the FCCPC's statutory and constitutional powers.
However, Justice Lewis-Allagoa was equally clear that those powers do not override the NCC's responsibilities.
"Concurrency means coexistence, not displacement," the judge said, stressing that both regulators have distinct but complementary roles rather than competing ones.
Under the ruling, the FCCPC retains precedence in competition and consumer protection matters as set out in Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The NCC, for its part, remains solely responsible for technical, licensing, and prudential oversight under the Nigerian Communications Act 2003.
The judge was explicit that nothing in the DEON Regulations creates a licensing regime for telecommunications services, confirming the NCC as the only body empowered to license telecom operators in Nigeria.
Questions over earlier FCCPC approvals
The ruling has immediate consequences for a decision made in April 2026, when the FCCPC approved five companies to operate as airtime and data credit providers under the DEON framework. The judgment puts the regulatory basis for those approvals under scrutiny and leaves open how the two commissions will coordinate oversight in the future.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), welcomed the ruling as much-needed clarity for the industry.
"The court has confirmed the FCCPC's authority and, in the same breath, affirmed that the NCC's role is preserved," Adebayo said.
He called on both regulators to build a formal coordination framework and consult industry players before taking enforcement steps that could disrupt services.
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Adebayo noted that airtime credit services, used by roughly 40 million Nigerians every day in a market worth between ₦300 billion and ₦400 billion annually, had already been suspended for three months earlier this year before being restored.
The judgment is expected to shape how the FCCPC and sector regulators divide oversight as digital financial products continue to blur traditional regulatory boundaries.
FCCPC resumes digital lending rules
Earlier, Legit.ng reported that the FCCPC has resumed full enforcement of its Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), following a decisive court ruling in Lagos.
The development could affect telecom operators such as MTN Nigeria and Airtel Nigeria, as well as digital loan apps that offer airtime, data and short-term credit services, many of which may now be required to comply with stricter regulatory conditions.
In a statement issued on Monday, July 20, 2026, the FCCPC said the resumption of the regulations followed a judgment delivered by Justice A.L. Allagoa of the Federal High Court, Lagos, in Suit No. FHC/L/CS/760/2026.
Source: Legit.ng
