More than 40 million Nigerians who depend on airtime lending services are awaiting a crucial judgment from the Federal High Court in Lagos on Monday in a case that could determine the future of one of the country’s most widely used telecom services.
The case, marked FHC/L/CS/760/2026, was filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which is challenging the legality of the Federal Competition and Consumer Protection Commission (FCCPC)’s Demand for Electronic Onboarding (DEON) Consumer Lending Regulations 2025 as they apply to airtime lending.
The judgment is expected to end months of uncertainty that followed the suspension of airtime lending services across mobile networks before the court issued an interim order restoring the service pending the determination of the suit.
WASPAN is asking the court to declare that the FCCPC lacks the legal authority to regulate airtime lending offered through licensed telecommunications operators and Value Added Service (VAS) providers. The association argues that such services fall exclusively under the regulatory oversight of the Nigerian Communications Commission (NCC).
The association is also seeking an order declaring the DEON Regulations unlawful and inapplicable to licensed telecom operators and VAS providers. It further wants the court to permanently restrain the FCCPC from enforcing the regulations against its members and to nullify all directives, sanctions and enforcement actions taken under the framework.
The dispute began after the FCCPC extended its digital lending regulations to cover airtime credit services. Following enforcement, telecom operators suspended airtime lending nationwide, disrupting a service widely used by low-income earners, traders, artisans, students and other subscribers who rely on borrowed airtime during financial emergencies.
The suspension sparked widespread complaints before the Federal High Court granted an interim injunction halting enforcement of the regulations, allowing airtime lending services to resume.
The FCCPC has defended the DEON Regulations, insisting they were introduced to strengthen consumer protection, improve transparency and promote responsible lending practices across Nigeria’s digital lending ecosystem. The commission maintains that consumer credit products, including airtime credit, fall within its statutory mandate.
Meanwhile, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) has called for greater regulatory clarity, warning that overlapping directives from government agencies create uncertainty for operators and discourage investment.
Industry stakeholders argue that telecommunications services are already regulated under the Nigerian Communications Act by the NCC and that additional regulatory requirements without proper coordination could disrupt service delivery.
Legal experts believe Monday’s judgment will define the boundaries between the FCCPC’s consumer protection powers and the NCC’s authority over telecommunications services. The ruling is also expected to shape the future regulatory framework for digital financial services delivered through telecom networks and provide certainty for operators, investors and millions of Nigerians who depend on airtime lending.
