Court Upholds FCCPC’s Powers to Regulate Over N400bn Consumer Airtime Lending Market

• Dismisses WASPAN’s suit, validates DEON regulations 

•Says FCCPC, NCC have complementary regulatory mandates 

•FCCPC resumes enforcement after vacation of restraining order

The Federal High Court in Lagos has delivered a judgement affirming the powers of the Federal Competition and Consumer Protection Commission (FCCPC) to regulate Nigeria’s digital consumer lending market, including airtime and data lending services, in a landmark ruling expected to reshape oversight of the country’s estimated N400 billion airtime credit industry.

Justice Ambrose Lewis-Allagoa dismissed in its entirety a suit filed by Wireless Application Service Providers Association of Nigeria (WASPAN), and held that FCCPC acted within its statutory and constitutional powers in issuing the Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations.

The judgement removed the legal obstacle that had temporarily restrained the commission from enforcing the regulations against operators in the digital lending ecosystem, including providers of Airtime Credit Services (ACS).

Delivering judgement in Suit No. FHC/L/CS/760/2026, Lewis-Allagoa held that the challenged provisions of the DEON Regulations were intra vires FCCPC and constitutionally valid as measures designed to protect consumers and prevent anti-competitive conduct.

Kemi Pinheiro, SAN, led WASPAN’s legal team, while Olufunke Aboyade, SAN, represented FCCPC.

The court held that FCCPC’s regulatory jurisdiction derived from Sections 16(2)(c), 16(3) and 17(2)(d) of the 1999 Constitution (as amended), as well as Item 60(a) of the Exclusive Legislative List, which conferred economy-wide authority over competition and consumer protection matters.

Lewis-Allagoa further held that Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA), 2018, gave FCCPC precedence in competition and consumer protection issues, while sector regulators retained their technical, licensing, and prudential responsibilities.

According to the court, the relationship between FCCPC and sector regulators is complementary rather than conflicting.

“Concurrency means coexistence, not displacement,” the judge held, adding that DEON Regulations do not usurp the statutory powers of Nigerian Communications Commission (NCC).

The court found that the regulations, when construed as consumer protection and competition measures rather than a licensing regime for communications services, fell squarely within FCCPC’s powers under Section 163 of FCCPA, read together with Sections 1, 2, 17 and 18 of the Act.

Lewis-Allagoa also rejected WASPAN’s contention that the regulations conflicted with the Nigerian Communications Act, 2003, holding that both statutes can be harmoniously interpreted.

He ruled that where competition and consumer protection issues arose, FCCPA provided the applicable legal framework, subject to the constitution.

Although the court dismissed FCCPC’s preliminary objection challenging its jurisdiction, it proceeded to determine the substantive issues in favour of the commission.

The judge declined all the declarations sought by WASPAN, refused all the reliefs contained in the Originating Summons, and dismissed the suit in its entirety.

He also discharged the four interim ex parte injunctions granted on April 15 restraining enforcement of the DEON Regulations, holding that the basis for the orders has ceased to exist following the dismissal of the substantive suit.

Lewis-Allagoa observed that a statutory regulator should not ordinarily be restrained from performing its lawful statutory duties.

Granting FCCPC’s cross-reliefs, the court affirmed that the commission was empowered under Section 163 of FCCPA to regulate conduct in the digital, electronic, online, and non-traditional consumer lending market, including preventing anti-competitive practices and protecting consumers.

The court further clarified that FCCPC’s authority operated alongside—not in place of—NCC’s regulatory powers under the Nigerian Communications Act.

Recognising the public importance of the issues, the court made no order as to costs.

The suit arose from FCCPC’s introduction of DEON Regulations, a framework designed to strengthen oversight of Nigeria’s digital lending industry following widespread concerns over the conduct of some online lenders.

The commission subsequently extended the framework to Airtime Credit Services, under which subscribers received airtime or data in advance and repaid later with an associated service charge.

WASPAN argued that airtime lending was a telecommunications value-added service regulated exclusively by NCC under the Nigerian Communications Act.

It contended that subjecting operators to FCCPC’s regulatory framework would result in dual regulation, increase compliance costs, and threaten the sustainability of the service.

FCCPC, however, maintained that deferred-payment airtime and data services constituted digital consumer lending and, therefore, fall within its statutory mandate to regulate consumer credit markets and protect consumers.

The judgement is expected to have implications beyond the telecommunications sector by providing judicial clarity on the relationship between sector-specific regulators and FCCPC’s economy-wide consumer protection and competition mandate.

It is also expected to guide the regulation of emerging digital financial products, where the responsibilities of multiple regulators overlap.

Following the judgement, FCCPC announced that it had resumed full implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

In a statement issued yesterday, the commission said the court upheld the validity of the challenged provisions of the regulations and discharged the interim ex parte order that had restrained their implementation.

It said the legal impediment that necessitated the temporary suspension of the regulations had now been removed, making them fully operational and enforceable.

The commission stated that it had suspended implementation immediately after being served with the interim order in April 2026, in compliance with the court’s directive and in keeping with its commitment to the rule of law.

Reacting to the judgement, FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, said the commission would continue to discharge its statutory responsibilities in accordance with the law.

Ijagwu said, “The commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the court issued its interim order, we immediately suspended implementation of the regulations in full compliance with the court’s directive.

“Now that the court has affirmed the validity of the DEON Regulations and delivered judgement in favour of the commission, we will continue to discharge our statutory responsibilities faithfully, professionally, and in accordance with the law.”

Ijagwu said the regulations were intended to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market.

He said, “Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike.”