The Federal High Court in Lagos is set to deliver a landmark judgment on Monday in a case that could determine the future of airtime lending services relied upon by more than 40 million Nigerians. The ruling is expected to clarify which regulator has legal authority over telecom-based airtime and data credit services, with significant implications for consumers, telecommunications operators and the wider digital economy.
The suit was filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which is challenging the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025. The association argues that airtime lending falls under the exclusive regulatory oversight of the Nigerian Communications Commission (NCC) as provided by the Nigerian Communications Act 2003.
The case has attracted widespread attention across Nigeria’s telecommunications industry because of its potential impact on millions of subscribers and licensed operators, with Brandspur Banking News Desk reporting that the court’s decision could redefine regulatory boundaries for digital lending services delivered through telecom networks.
WASPAN is asking the court to declare that the FCCPC exceeded its statutory powers by extending its consumer lending regulations to value-added telecommunications services already supervised by the NCC. The association is also seeking orders preventing the commission from enforcing the disputed regulations against licensed operators.
Telecommunications operators have supported the challenge, maintaining that airtime borrowing is a telecommunications service rather than a conventional financial product. Industry stakeholders argue that the service provides an essential communication lifeline for low-income earners, traders, artisans and millions of Nigerians who depend on emergency airtime credit.
The FCCPC, however, maintains that its regulations are lawful under the Federal Competition and Consumer Protection Act 2018. According to the commission, airtime borrowing functions as a form of consumer micro-credit because users receive airtime before making repayment through subsequent recharges, making consumer protection measures necessary.
The regulatory dispute previously resulted in the temporary suspension of airtime lending services by major mobile network operators, including MTN, Airtel and Globacom, before operations resumed following interim court orders.
Beyond resolving the disagreement between the FCCPC and telecommunications stakeholders, Monday’s judgment is expected to establish an important legal precedent for the regulation of Nigeria’s expanding digital economy, while providing long-term certainty for operators, investors and millions of consumers who regularly depend on airtime borrowing services.
