ABUJA, July 22 – A Nigerian court has upheld the country’s digital lending regulations while ruling that the Federal Competition and Consumer Protection Commission (FCCPC) does not have the authority to license telecommunications companies or regulate airtime lending, leaving those responsibilities with the Nigerian Communications Commission (NCC).
The judgment, delivered by Justice Ambrose Lewis-Allagoa, dismissed a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which sought to overturn the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
While the court affirmed the validity of the regulations, it also clarified that the FCCPC’s role in consumer protection does not replace the NCC’s statutory powers over telecommunications licensing and technical regulation.
The ruling brings an end to months of uncertainty that affected airtime and data credit services used by about 40 million Nigerians. In April, major operators including MTN, Airtel and Glo suspended emergency airtime and data advances after the FCCPC classified the services as digital loans under the DEON regulations. The commission later paused enforcement while the case was before the court, allowing operators to restore the services.
The FCCPC welcomed the decision, saying the regulations are now fully enforceable. However, the court stressed that both regulators must work together, noting that their responsibilities should coexist rather than overlap.
Industry stakeholders said the judgment provides long-awaited clarity for Nigeria’s digital lending and telecommunications sectors. Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the decision clearly defines the responsibilities of both regulators and called for closer coordination before any future enforcement actions.
