A Federal High Court has affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to regulate Nigeria’s digital consumer lending sector while raising fresh questions over the regulatory status of five firms approved by the Commission to provide airtime and data credit services.
Justice Lewis Alagoa, in a judgment delivered on July 20, 2026, in the case of WASPAN v. FCCPC (Suit No. FHC/L/CS/760/2026), upheld the constitutional validity of the FCCPC’s DEON Consumer Lending Regulations and discharged four interim injunctions that had restrained the Commission since April 15, 2026.
The court ruled that the FCCPC has statutory powers under Sections 104 and 105 of the Federal Competition and Consumer Protection Act 2018 to regulate conduct in the digital, electronic, online and other non-traditional consumer lending markets.
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However, the judgment drew a clear distinction between the Commission’s consumer protection mandate and the licensing responsibilities of sector regulators.
Justice Alagoa held that the FCCPC’s regulatory authority coexists with, rather than replaces, the statutory powers of sector regulators such as the Nigerian Communications Commission (NCC).
According to the judgment, the NCC retains exclusive responsibility for technical regulation, licensing and prudential oversight in the telecommunications sector, while the FCCPC’s DEON Regulations are limited to consumer protection and competition issues and do not constitute a licence to provide communications services.
The ruling has significant implications for five companies approved by the FCCPC in April 2026 to operate as licensed airtime and data credit providers under the DEON framework.
The firms are Total Tim Nigeria Limited, Rane Interactive Medien CLS Limited, Mode NG Applications Limited, Cloud Interactive Associate Limited and Coverage Broadband Limited.
The approvals came after telecommunications operators, including MTN, Airtel, Glo and 9mobile, suspended their airtime and data credit services following the FCCPC’s enforcement of the DEON Regulations.
The suspension reportedly affected about 40 million users of services such as MTN XtraTime and Airtel Borrow Me Credit, prompting the FCCPC to approve alternative providers to restore access to airtime credit services.
However, the court noted that airtime and data credit services depend on telecommunications infrastructure, including USSD platforms, short codes, SMS gateways and carrier billing systems, all of which are regulated by the NCC.
By holding that the DEON Regulations do not amount to a communications licence, the court indicated that any company seeking to provide airtime credit through telecommunications networks would require separate authorisation from the NCC.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) had earlier expressed concerns over the regulatory framework governing the FCCPC-approved firms.
ALTON Chairman, Gbenga Adebayo, warned that
uncertainty surrounding the regulatory process could undermine investor confidence in Nigeria’s telecommunications sector and affect the country’s digital infrastructure ambitions under the National Development Plan 2026-2030.
The judgment places the NCC at the centre of the next phase of the regulatory process, requiring both the FCCPC and the telecommunications regulator to operate within their respective statutory mandates.
While the FCCPC retains authority over consumer protection and competition issues in digital lending, the NCC remains responsible for licensing and regulating entities providing services on telecommunications networks.
The ruling leaves unresolved the question of whether the five FCCPC-approved firms can lawfully operate without obtaining licences from the NCC, leaving their regulatory status uncertain pending further clarification by the communications regulator.
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