Court Halts FCCPC Digital Lending Regulations As MTN Suspends Data, Airtime Credit Service
- A Federal High Court in Lagos restrained the FCCPC from enforcing parts of its digital lending regulations
- The suit was filed by the Wireless Application Service Providers Association of Nigeria
- Justice Ambrose Lewis-Allagoa adjourned the case, maintaining the status quo and halting sanctions
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A Federal High Court in Lagos has restrained the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing key provisions of its Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, pending the determination of a substantive suit.
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Court issues order to FCCPC
Justice Ambrose Lewis-Allagoa granted an interim injunction following an ex earlier application filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), which is challenging the legality and application of the regulations.
The association had earlier approached the court on April 14, 2026, seeking urgent judicial intervention to halt the enforcement of provisions it described as exceeding the regulator’s legal authority under the DEON Consumer Lending Regulations.
In granting the order, the judge said the applicant had shown enough urgency and legal basis to warrant temporary protection until the hearing of the motion on notice for an interlocutory injunction, Leadership reports.
WASPA Nigeria, through senior advocate Kemi Pinheiro, SAN, argued that several parts of the regulations place obligations on its members operating within Nigeria’s telecom and digital services sector.
The group maintained that the FCCPC does not have statutory authority to regulate technical and operational aspects of telecommunications, which it said fall under the Nigerian Communications Commission (NCC).
In its application, WASPA asked the court to stop the FCCPC from applying specific sections of the regulations, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32, and from issuing sanctions, penalties, or compliance directives against its members.
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Temporary setback for the FCCPC
After considering the affidavit submitted by Ayo Stuffman, the court issued interim orders maintaining the existing situation.
The judge stopped the FCCPC from enforcing the disputed provisions, acting against WASPA members, or issuing additional directives under the challenged regulatory framework, Tribune reports.
The commission was also prohibited from imposing penalties or sanctions on affected parties while the case is pending.
The case has been adjourned to April 27, 2026, for the hearing of the substantive motion.
The ruling marks a temporary setback for the FCCPC, which introduced the regulations to strengthen oversight of Nigeria’s fast-growing digital lending and fintech industry, focusing on consumer protection, data privacy, and tackling unregulated lending practices.
MTN halts data, airtime credit service
Legit.ng earlier reported that MTN Nigeria has explained its decision to temporarily suspend airtime and data lending services, popularly known as Xtratime.
In a corporate filing to the Nigerian Exchange Limited, the telecom giant said that its decision is due to new regulatory requirements governing digital lending in Nigeria.
MTN noted that the suspension is part of efforts to comply with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
Source: Legit.ng
