A Federal High Court has affirmed the Federal Competition and Consumer Protection Commission (FCCPC) as the regulator of digital consumer lending in Nigeria, while raising fresh uncertainty over the legal status of five firms approved to offer airtime and data credit services.
In a judgment delivered on 20 July 2026 in WASPAN v. FCCPC (Suit No. FHC/L/CS/760/2026), Justice Lewis Alagoa upheld the validity of the FCCPC’s DEON Consumer Lending Regulations and lifted four interim injunctions that had restricted the Commission since 15 April 2026.
The court ruled that the FCCPC has the legal authority under Sections 104 and 105 of the Federal Competition and Consumer Protection Act 2018 to regulate digital consumer lending and other non-traditional lending platforms. However, the judge clarified that the Commission’s powers are limited to consumer protection and competition, and do not replace the licensing responsibilities of sector regulators.
According to the ruling, the Nigerian Communications Commission (NCC) retains exclusive authority over telecommunications licensing, technical regulation and oversight. The court stressed that the DEON Regulations do not serve as a licence to provide communications services.
The decision affects five companies approved by the FCCPC in April 2026 to provide airtime and data credit services under the DEON framework. They are:
- Total Tim Nigeria Limited
- Rane Interactive Medien CLS Limited
- Mode NG Applications Limited
- Cloud Interactive Associate Limited
- Coverage Broadband Limited
The approvals followed the suspension of airtime and data credit services by MTN, Airtel, Glo, and 9mobile after the enforcement of the DEON Regulations. The disruption reportedly affected about 40 million users of services such as MTN XtraTime and Airtel Borrow Me Credit, prompting the FCCPC to approve alternative providers.
However, the court observed that airtime and data credit services rely on telecommunications infrastructure such as USSD platforms, short codes, SMS gateways, and carrier billing systems, all of which fall under the regulatory authority of the NCC. As a result, any company wishing to operate such services through telecom networks must obtain the appropriate authorisation from the communications regulator.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) had previously raised concerns about the regulatory framework for the FCCPC-approved firms. Its Chairman, Gbenga Adebayo, warned that uncertainty could weaken investor confidence and slow Nigeria’s digital infrastructure goals under the National Development Plan 2026–2030.
While the judgment confirms the FCCPC’s role in regulating digital consumer lending, it leaves unresolved whether the five approved firms can legally operate without NCC licences. Their regulatory status now depends on further clarification from the communications regulator.
Do you think clearer coordination between regulators would improve confidence in Nigeria’s digital lending and telecom sectors?
