A Nigerian court on Monday upheld the country's digital lending regulations but ruled that the Federal Competition and Consumer Protection Commission (FCCPC) cannot license telecommunications companies or oversee airtime lending. Justice Ambrose Lewis-Allagoa delivered the ruling in Suit No. FHC/L/CS/760/2026, dismissing a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN) that sought to nullify the FCCPC's Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025. The court agreed with WASPAN's argument that the FCCPC's consumer protection powers do not extend to licensing telecommunications operators, leaving those powers exclusively with the Nigerian Communications Commission (NCC). The ruling affects airtime and data credit services used by an estimated 40 million Nigerians in a market worth between ₦300 billion and ₦400 billion annually.
Court Upholds DEON Regulations While Limiting FCCPC Telecom Authority
Justice Lewis-Allagoa upheld the validity of the DEON Regulations 2025 while establishing clear jurisdictional boundaries between regulators. The court held that the FCCPC's jurisdiction over competition and consumer protection exists alongside the NCC's statutory responsibilities. In one of the judgment's most significant pronouncements, the court said "concurrency means coexistence, not displacement," affirming the FCCPC's powers under the Federal Competition and Consumer Protection Act while preserving the NCC's exclusive authority over telecommunications licensing, technical regulation and prudential oversight. The court further held that the FCCPC lacks the power to issue telecommunications licenses and that nothing contained in the DEON Regulations creates a telecommunications licensing regime.
Service Disruptions Affected 40 Million Nigerian Subscribers
The judgment brings an end to months of regulatory uncertainty that disrupted airtime and data credit services across Nigeria. In April 2026, major telecom operators, including MTN, Airtel, and Glo, suspended emergency airtime and data credit offerings after the FCCPC classified airtime advances as digital loans under the DEON Regulations. Operators argued that continuing to offer the services without regulatory clarity exposed them to significant compliance risks. The disruption affected millions of subscribers who rely on airtime advances for everyday communication. A month later, WASPAN secured an interim injunction restraining the FCCPC from enforcing the regulations pending the determination of the substantive suit. The Commission subsequently suspended implementation, allowing operators such as Globacom and Airtel Africa to restore services while the case proceeded.
FCCPC and WASPAN Respond to Ruling
The FCCPC welcomed the ruling, saying the legal barrier to enforcing the regulations had now been removed, making them "fully operational and enforceable." Ondaje Ijagwu, the FCCPC's Director of Corporate Affairs, said in a statement: "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 and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law." WASPAN described the ruling as both a victory and a defeat, noting that although the court dismissed its application seeking to nullify the DEON Regulations, it agreed with its position that the FCCPC cannot issue licenses within the telecommunications sector. "The Court held that there was no conflict between the Federal Competition and Consumer Protection Act and the Nigerian Communications Act," WASPAN said in a statement. "The FCCPC is vested with powers relating to competition and consumer protection, while the Nigerian Communications Commission remains the regulator responsible for licensing companies in the telecommunications sector."
NCC Retains Exclusive Telecommunications Licensing Power
In April 2026, the FCCPC approved five companies to operate airtime and data credit services under the DEON framework. Although the judgment did not invalidate those approvals, it raises questions about the legal basis on which they were granted, given the court's reaffirmation that licensing authority belongs solely to the NCC. Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said in a statement: "The court has done something important. It has confirmed the FCCPC's authority and, in the same breath, affirmed that the NCC's role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court's reasoning requires." He urged both agencies to consult industry players before taking enforcement actions that could affect services relied upon by millions of Nigerians. "Forty million Nigerians depend on these services," he said. "The court has made clear that both regulators have a role. The industry is asking them to define how that works before any action that could disrupt access again."
FAQ
What did the Nigerian court rule on Monday regarding digital lending regulations?
The Nigerian court upheld the FCCPC's Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 but ruled that the FCCPC cannot license telecommunications companies or oversee airtime lending. Justice Ambrose Lewis-Allagoa dismissed WASPAN's suit seeking to nullify the regulations while agreeing that licensing authority belongs exclusively to the NCC.
Why did telecom operators suspend airtime and data credit services in April 2026?
Major telecom operators including MTN, Airtel, and Glo suspended emergency airtime and data credit offerings in April 2026 after the FCCPC classified airtime advances as digital loans under the DEON Regulations. Operators argued that continuing to offer the services without regulatory clarity exposed them to significant compliance risks.
How does the court ruling affect the relationship between FCCPC and NCC?
The court held that "concurrency means coexistence, not displacement," affirming the FCCPC's powers under the Federal Competition and Consumer Protection Act while preserving the NCC's exclusive authority over telecommunications licensing, technical regulation and prudential oversight. The ruling establishes that the FCCPC's jurisdiction over competition and consumer protection exists alongside the NCC's statutory responsibilities.
