The Wireless Application Service Providers Association of Nigeria (WASPAN) has warned that more than 40 million Nigerians who depend on airtime borrowing services could face fresh disruptions if the Federal Competition and Consumer Protection Commission (FCCPC) resumes full enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 before an appeal is decided. The association said the dispute over the DEON Regulations could affect millions of low-income subscribers who rely on airtime borrowing services for daily communication.
The warning is contained in an affidavit filed 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 authority to issue and enforce the regulations.
The case centres on whether the FCCPC has the legal power to regulate telecommunications-based airtime lending services or whether that responsibility belongs solely to the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.
Following the judgment, WASPAN filed a notice of appeal on July 21, asking the court to stop the FCCPC from enforcing the regulations until the Court of Appeal rules on the matter.
According to Stuffman, the association became concerned after the FCCPC announced that the regulations were once again “fully operational and enforceable.”
“I know for a fact that unless restrained by the orders of this court, the defendant will proceed to enforce the said regulations against members of the plaintiff,” he stated in the affidavit.
WASPAN argued that immediate enforcement of the DEON Regulations could expose its members to sanctions, create regulatory uncertainty and disrupt legitimate business operations. The association also said its members were already being restricted through additional regulatory controls, partnership approvals and service agreement requirements imposed by the FCCPC, despite being regulated primarily by the NCC.
The affidavit further stated that allowing enforcement while the appeal is pending could undermine the entire appeal process. Senior Advocate of Nigeria (SAN) Chukwudi Enebeli, who represents WASPAN, argued that the appeal raises important legal questions about the extent of the FCCPC’s powers over telecommunications services.
The dispute has attracted widespread attention because the airtime borrowing services market is estimated to be worth between ₦300 billion and ₦400 billion annually. Industry stakeholders say around 40 million Nigerians, including traders, artisans and other low-income earners, regularly depend on the service.
Earlier in the proceedings, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argued that airtime credit is not a traditional financial product but an essential telecommunications service that helps millions of Nigerians stay connected, especially during emergencies.
The regulatory disagreement had previously led to the temporary suspension of airtime borrowing by major mobile network operators before the court granted interim relief allowing the services to resume.
WASPAN is now seeking similar protection while its appeal is being heard, insisting that maintaining the current arrangement is necessary to prevent another disruption affecting millions of subscribers.
The FCCPC, however, said it would continue enforcing the regulations following the court’s ruling.
“The commission has always maintained that the rule of law is fundamental to effective regulation and good governance.
“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,” said FCCPC Director of Corporate Affairs, Ondaje Ijagwu.
Do you think the court should suspend the DEON Regulations until the appeal is fully decided?
