5 Things To Know As Court Decides Fate Of Airtime Lending Used By Over 40m Nigerians on Monday
- A Federal High Court in Lagos is set to deliver judgment on Monday in a suit between WASPAN and the FCCPC over who regulates airtime lending services
- MTN, Airtel and Globacom suspended airtime borrowing services for about three months after the FCCPC moved to enforce its DEON Regulations 2025
- ALTON describes airtime credit as economic infrastructure worth between ₦300 billion and ₦400 billion annually, used by roughly 40 million Nigerians
More than 40 million Nigerians who rely on airtime borrowing services could know the future of one of the country's most widely used telecom products on Monday, July 20, as the Federal High Court in Lagos delivers judgment in a landmark regulatory dispute between the Wireless Application Service Providers Association of Nigeria (WASPAN) and the Federal Competition and Consumer Protection Commission (FCCPC).
Source: Getty Images
The suit, marked FHC/L/CS/760/2026, is expected to clarify whether the FCCPC can regulate telecommunications-based airtime and data lending services under its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 or whether oversight of such services rests exclusively with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.
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Beyond the parties before the court, the judgment is expected to shape the regulatory future of a service that industry operators describe as a financial lifeline for millions of Nigerians, particularly low-income earners, artisans, traders and small business owners who depend on emergency airtime credit to stay connected.
Prayers Before The Court
In the substantive suit filed by Senior Advocate of Nigeria (SAN) Kemi Pinheiro on behalf of WASPAN and allied operators, the plaintiffs are asking the court to declare that the FCCPC exceeded its statutory powers by seeking to regulate telecommunications Value Added Services (VAS), including airtime and data lending, which they argue already fall within the exclusive regulatory jurisdiction of the NCC.
They are also seeking a perpetual injunction restraining the FCCPC from enforcing the DEON Regulations against licensed telecom value-added service providers, preventing the commission from imposing administrative sanctions under the framework and setting aside actions taken pursuant to the disputed regulations
The operators further contend that the DEON framework was introduced without adequate consultation with industry stakeholders or proper coordination with the sector regulator, arguing that the process fell short of established regulatory standards.
Industry, FCCPC Differ on Regulatory Powers
The legal dispute has exposed sharp differences between telecom operators and the consumer protection regulator over who should regulate airtime lending.
WASPAN maintains that the case is aimed at protecting licensed operators and preserving uninterrupted access to airtime lending for millions of Nigerians.
Source: Twitter
Supporting the association's position, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argues that airtime credit is fundamentally different from conventional consumer loans.
ALTON Chairman, Gbenga Adebayo, said the controversy demonstrated that airtime credit should not be viewed solely as a financial product.
He disclosed:
"What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterized it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy."
According to ALTON, the enforcement of the DEON regulations threatened an ecosystem estimated to be worth between N300 billion and N400 billion annually, raising concerns over investor confidence and market stability.
The FCCPC, however, insists it is acting within the powers granted to it under the Federal Competition and Consumer Protection Act (FCCPA), 2018.
The commission argues that when subscribers borrow airtime through USSD codes and repay on subsequent recharges, the transactions constitute consumer micro-credit and therefore fall within its consumer protection mandate.
According to the FCCPC, the DEON Regulations were introduced to strengthen transparency, promote responsible lending practices, protect consumers from unfair terms and improve data privacy standards across digital lending platforms.
Millions Felt the Impact
The dispute quickly extended beyond the courtroom.
Following the FCCPC's move to enforce compliance with the DEON Regulations, major mobile network operators, including MTN, Airtel and Globacom, suspended airtime borrowing services such as MTN XtraTime.
Industry operators said the disruption lasted for about three months and temporarily denied roughly 40 million subscribers access to emergency airtime credit.
They said the suspension particularly affected traders, artisans, transport operators, dispatch riders and other Nigerians in the informal economy who depend on airtime borrowing to maintain daily communication and business activities.
The services were eventually restored after the court granted interim relief and enforcement of the regulations was suspended pending determination of the substantive suit.
However, operators say the absence of a final judicial pronouncement has left uncertainty over the future of the service.
Contempt Proceedings
The litigation also gave rise to contempt proceedings after WASPAN accused the FCCPC of violating an interim injunction granted by the court on April 15, 2026.
Justice Ambrose Lewis-Allagoa subsequently commenced committal proceedings against the commission's leadership and issued a Form 45 Notice of Consequences of Disobedience to Court Order directed at FCCPC Executive Vice Chairman, Tunji Bello.
The contempt application followed allegations that approvals were granted to certain operators under the disputed DEON framework despite the subsisting interim order. The FCCPC has maintained that it suspended enforcement of the regulations pending the court's determination.
Why Monday's Judgment Matters
Legal and industry observers say Monday's ruling is expected to go beyond resolving the dispute between WASPAN and the FCCPC.
The judgment could define the limits of the FCCPC's regulatory authority, clarify its relationship with sector regulators such as the NCC, and establish an important precedent on how overlapping regulatory powers should be exercised in Nigeria's digital economy.
It is also expected to determine the future regulatory framework for airtime lending, a service that industry operators say has become an essential support mechanism for millions of Nigerians.
Whether the court upholds the FCCPC's powers, rules in favour of WASPAN or issues further directives, the decision is likely to have far-reaching implications for consumer protection, telecommunications regulation, investor confidence and access to emergency mobile credit across Nigeria.
MTN restores airtime, data borrowing service, shares code to activate
Earlier, Legit.ng reported that MTN Nigeria has restored its airtime and data borrowing service, allowing millions of subscribers to once again access emergency credit after weeks of disruption linked to a regulatory dispute.
The telecommunications company confirmed that eligible customers can activate the service by dialling *303# to borrow airtime or data based on their approved credit limits.
Source: Legit.ng
