In a major development within Nigeria’s telecommunications sector, two divisions of the Federal High Court have issued interim injunctions restoring airtime lending services and halting enforcement of disputed regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC). The FCCPC had rolled out the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations in 2025, a move that sparked legal challenges from industry stakeholders.
The rulings, delivered in Lagos and Abuja, reinstate services used by millions of Nigerians and provide temporary relief to licensed Value Added Service providers affected by the dispute.In Lagos, Justice A. Lewis-Allagoa, on April 15, 2026, granted four interim injunctions in a suit filed by the Wireless Application Service Providers Association of Nigeria against the FCCPC. The court restrained the commission and its representatives from enforcing the DEON Regulations, including key provisions within the framework.It also barred the FCCPC from interfering with the operations of WASPA members, imposing penalties for alleged non-compliance, or issuing directives tied to the enforcement of the rules. The matter was adjourned to April 27, 2026, for further hearing.
Similarly, the Federal High Court in Abuja, on April 24, 2026, granted an interim order following an ex parte application by Nairtime Holdings Limited and Nairtime Nigeria Limited against MTN Nigeria Communications Plc and Airtel Networks Limited. The court restrained both telecom firms and their agents from suspending or limiting Nairtime Nigeria Limited’s access to their platforms, including short codes, SMS, USSD, and billing systems.
The order remains in effect for the duration of Nairtime’s valid licence issued by the Nigerian Communications Commission (NCC) and prevents the operators from relying on the FCCPC regulations to justify service disruptions. The applicants argued that the planned suspension was based on directives linked to the DEON Regulations, despite meeting contractual obligations and without any proven breach or required notice. The court held that there were sufficient grounds to grant interim relief pending the determination of the substantive case. Collectively, the rulings put enforcement of the DEON Regulations on hold, creating a temporary legal environment that allows airtime lending and related services to continue uninterrupted.
Under the orders, the FCCPC is restricted from taking action against VAS providers, while telecom operators are barred from using the regulations to deny licensed providers access to their networks. The DEON Regulations, introduced in July 2025, were intended to expand oversight of unsecured digital lending, including airtime and data credit services. However, the policy faced strong opposition from industry players, particularly the Association of Licensed Telecommunications Operators of Nigeria, which argued that the rules encroached on the statutory role of the NCC, created overlapping compliance requirements, and conflicted with an existing memorandum of understanding between both regulators.
ALTON had earlier raised these concerns with the NCC in August 2025, warning that unresolved jurisdictional issues could destabilise the market.The ongoing legal battle and its implications appear to reinforce those concerns. While the rulings offer immediate relief to operators and consumers, they remain temporary measures. The final outcome will depend on the courts’ decisions in the substantive suits, which will determine the extent of the FCCPC’s authority over digital lending in Nigeria’s telecommunications sector.
Source: https://guardian.ng/
