More than 40 million telecom users could lose airtime loan access as the legal dispute between the Federal Competition and Consumer Protection Commission and the Wireless Application Service Providers Association of Nigeria (WASPAN) deepens over the regulation of airtime lending services.
WASPAN warned that full enforcement of the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 before the determination of its appeal could disrupt airtime borrowing services relied upon by millions of Nigerians, particularly low-income earners.
The warning is contained in an affidavit deposed to by the Chairman of WASPAN, Ayo Stuffman, in support of the association’s application for an injunction pending appeal following the July 20 judgment of the Federal High Court in Lagos, which upheld the FCCPC’s powers to issue and enforce the regulations.
The association had filed a notice of appeal on July 21, urging the court to restrain the FCCPC from implementing the regulations until the Court of Appeal determines the substantive issues.
The dispute centres on whether the FCCPC has the legal authority to regulate telecommunications-based airtime lending services or whether that responsibility rests exclusively with the Nigerian Communications Commission under the Nigerian Communications Act, 2003.
According to the affidavit, WASPAN became concerned after the FCCPC announced shortly after the judgment that enforcement of the DEON Regulations had resumed.
The Commission stated that the legal obstacle which led to the temporary suspension of the regulations had been removed and that the framework had become fully operational and enforceable.
Stuffman argued that immediate enforcement of the regulations while the appeal is pending could expose operators to sanctions, create regulatory uncertainty and disrupt services used by millions of subscribers.
He stated, “I know for a fact that unless restrained by the orders of this Honourable Court, the Defendant will proceed to enforce the said regulations against members of the Plaintiff.”
He further argued that members of the association would continue to face regulatory uncertainty, sanctions and disruption to their lawful business activities if the FCCPC proceeds with implementation before the appeal is determined.
According to him, the FCCPC’s regulatory requirements, including partnership approvals and service agreement obligations, constrain members who are already regulated by the Nigerian Communications Commission.
The affidavit added that enforcement before the appeal is concluded could render the issues before the appellate court nugatory.
Legal advice attached to the application by Senior Advocate of Nigeria, Chukwudi Enebeli, stated that the appeal raises substantial legal questions regarding the scope of the FCCPC’s regulatory powers over telecommunications services.
The advice also stated that there is a real possibility that implementation of the regulations could disrupt the operations of WASPAN members while the appeal is pending.
The association argued that refusing its application for an injunction would effectively create a fait accompli before the Court of Appeal has the opportunity to determine the legality of the regulations.
The dispute has attracted attention across the telecommunications industry because of its potential impact on Nigeria’s airtime lending ecosystem, estimated by industry stakeholders to be worth between N300bn and N400bn annually.
Industry estimates also indicate that about 40 million Nigerians regularly use airtime borrowing services, particularly traders, artisans, low-income earners and other participants in the informal economy.
Earlier in the proceedings, the Association of Licensed Telecommunications Operators of Nigeria argued that airtime credit is not a conventional financial product but an essential telecommunications service that enables millions of Nigerians to remain connected, especially during emergencies.
The regulatory disagreement had previously led to the temporary suspension of airtime borrowing services by major mobile network operators before the Federal High Court granted interim relief allowing the services to resume pending the determination of the substantive suit.
WASPAN is now seeking similar protection pending the outcome of its appeal, insisting that maintaining the status quo is necessary to prevent another disruption that could affect millions of subscribers nationwide.
The FCCPC, however, maintained that it would continue to enforce the regulations following the court’s decision.
The Commission’s Director of Corporate Affairs, Ondaje Ijagwu, said, “The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance.”
He added, “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.”
