WASPAN In Fresh Move to Avert Another Airtime Lending Disruption For 40m Nigerians
- WASPAN warned that resuming FCCPC enforcement of DEON Regulations could disrupt airtime lending services relied on by over 40 million Nigerians
- The association filed a notice of appeal on July 21, 2026, one day after a Federal High Court upheld the FCCPC's power to enforce the regulations
- The airtime lending ecosystem at the centre of the legal dispute is estimated to be worth between ₦300 billion and ₦400 billion annually
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More than 40 million Nigerians who rely on airtime borrowing services could face another disruption if the Federal Competition and Consumer Protection Commission (FCCPC) resumes full enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations before the Court of Appeal determines a pending appeal, the Wireless Application Service Providers Association of Nigeria (WASPAN) has warned.
Source: Getty Images
The warning is contained in an affidavit deposed to by WASPAN Chairman, Ayo Stuffman, in support of the association's application for an injunction pending appeal against the July 20 judgment of the Federal High Court in Lagos, which upheld the FCCPC's powers to issue and enforce the DEON Regulations
The legal dispute has attracted widespread attention because of its implications for an airtime lending ecosystem estimated by industry stakeholders to be worth between N300 billion and N400 billion annually and relied upon by about 40 million Nigerians, particularly low-income earners, traders, artisans and others in the informal economy.
Fresh Legal Battle
The suit, marked FHC/L/CS/760/2026, centres on whether the FCCPC has the legal authority to regulate telecommunications-based airtime lending services or whether that responsibility rests exclusively with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.
Following the July 20 judgment, WASPAN filed a notice of appeal on July 21 and is asking the court to restrain the FCCPC from implementing the regulations pending the determination of the appeal.
According to Stuffman's affidavit, the association became concerned after the FCCPC announced in a press statement issued shortly after the judgment that implementation of the DEON Regulations had resumed.
The commission stated:
"The Federal Competition and Consumer Protection Commission (FCCPC) has resumed implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
"Accordingly, the legal impediment that had necessitated the Commission's temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable."
Fear of Another Disruption
In the affidavit, Stuffman argued that enforcing the regulations before the appeal is heard could expose the association's members to sanctions, create regulatory uncertainty and disrupt airtime lending services relied upon by millions of subscribers.
He also contended that the association's members were already being constrained in their operations under the regulatory framework of the NCC through what he described as the FCCPC's additional requirements relating to approvals, partnerships and service agreements.
According to the affidavit, allowing the FCCPC to proceed with enforcement before the appeal is determined could undermine the reliefs being sought before the Court of Appeal and effectively render the appeal academic.
The affidavit further disclosed that Senior Advocate of Nigeria, Chukwudi Enebeli, counsel to WASPAN, advised that the appeal raises "substantial, weighty, arguable and recondite issues of law" regarding the scope of the FCCPC's regulatory powers over the telecommunications sector.
WASPAN argued that preserving the status quo pending the appeal was necessary to avoid another disruption to airtime borrowing services across the country.
Background to the Dispute
The regulatory disagreement previously resulted in the temporary suspension of airtime borrowing services by major mobile network operators before the Federal High Court granted interim relief, allowing the services to resume pending determination of the substantive suit.
Earlier in the proceedings, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) had maintained that airtime credit is not a conventional financial product but critical communications infrastructure that enables millions of Nigerians to remain connected, particularly during emergencies.
Source: Getty Images
FCCPC Responds
Responding after the July 20 judgment, the FCCPC maintained that it would continue implementing the regulations in line with the court's decision.
The Commission's Director of Corporate Affairs, Ondaje Ijagwu, said: "The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance."
He added:
"Now that the Court has affirmed the validity of the DEON Regulations, the Commission will continue to discharge its statutory responsibilities faithfully, professionally and in accordance with the law."
The Court of Appeal is expected to determine whether the High Court judgment should stand and whether the FCCPC can continue enforcing the regulations while the appeal is pending.
MTN restores airtime, data borrowing service
In a related development, Legit.ng reported that MTN Nigeria reinstated its airtime and data borrowing service, giving eligible subscribers access to emergency credit again after a temporary suspension caused by a regulatory disagreement.
The telecom operator said qualified customers can borrow airtime or data by dialling *303#, subject to their approved credit limits.
The development followed similar moves by Airtel and Glo, which had resumed their airtime and data lending services before MTN.
Source: Legit.ng
