Key Takeaways
- Approximately 40 million Nigerians rely on airtime borrowing services.
- The Federal Competition and Consumer Protection Commission (FCCPC) may enforce new regulations soon.
- The Wireless Application Service Providers Association of Nigeria (WASPAN) is appealing a court decision supporting these regulations.
- The regulatory dispute could disrupt essential services for many low-income individuals.
In a significant development, the Federal Competition and Consumer Protection Commission (FCCPC) may resume its enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025, placing millions of low-income Nigerians at risk. This potential enforcement could impact approximately 40 million people who rely on airtime borrowing services, a service vital for many in the informal economy.
The concern has been articulated by the Wireless Application Service Providers Association of Nigeria (WASPAN) through an affidavit filed by Chairman Ayo Stuffman. The affidavit supports the association's application for an injunction pending the outcome of an appeal against the FCCPC's authority to enforce the DEON Regulations following a ruling from the Federal High Court on July 20 that reinforced the FCCPC's powers.
The ongoing legal dispute, documented as Suit No. FHC/L/CS/760/2026, encompasses critical questions regarding whether the FCCPC possesses the legal authority to oversee telecommunications-based airtime lending services or if such powers lie only with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act of 2003. After filing an appeal on July 21, WASPAN is now seeking a stay of the enforcement of these regulations.
In his affidavit, Stuffman expressed alarm when the FCCPC announced its intention to implement the DEON Regulations imminently after the ruling. He stated that this development could bring serious consequences, such as regulatory uncertainty and possible sanctions for operators, jeopardizing services that millions of subscribers consider essential.
“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 elaborated. He further noted that such an immediate enforcement would place WASPAN members in a precarious situation, depriving them of their lawful business operations.
The association contends that its members are already facing constraints imposed by the FCCPC’s heightened regulatory scrutiny, which it claims supersedes their operational freedom as dictated by the NCC. Additionally, Stuffman highlighted that any enforcement actions taken while the appeal is in progress could diminish the relevance of the substantive issues being discussed in the appellate court.
Legal expert Chukwudi Enebeli, SAN, representing WASPAN, remarked that the case raises substantial legal questions about the limits of the FCCPC’s jurisdiction over telecommunications services. The attached legal advice indicates that proceeding with the implementation of these regulations may severely disrupt business continuity for WASPAN members during the appeal process.
This legal clash garners extensive attention within the industry due to its implications for Nigeria’s airtime lending ecosystem, valued at between ₦300 billion and ₦400 billion annually. This service is crucial for low-income earners, traders, artisans, and informal economy participants.
In previous proceedings, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argued that airtime credit should not be classified as a conventional financial product, but rather as a vital telecommunications service that connects individuals, especially in emergencies. This regulatory disagreement previously initiated a temporary suspension of airtime borrowing services until the court granted a short-term relief that allowed those services to resume.
WASPAN is now aiming for similar protections during the appeal process, asserting that maintaining the status quo is paramount to prevent further disruptions affecting millions nationwide. Despite these concerns, the FCCPC remains firm in its stance to enforce the regulations, asserting its legal backing following the court's ruling.
According to Ondaje Ijagwu, the Commission’s Director of Corporate Affairs, “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.”
Why This Matters
This regulatory dispute highlights the ongoing tension between consumer protection and the regulatory landscape affecting vital services in Nigeria, which could significantly impact the livelihoods of millions if not resolved judiciously.