In a significant development for Nigeria’s telecommunications sector, two divisions of the Federal High Court have issued interim injunctions restoring airtime lending services and restraining the enforcement of contentious regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC). The FCCPC had introduced the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations in 2025, prompting legal action from industry stakeholders.
The rulings, delivered in Lagos and Abuja, restored services relied upon by millions of Nigerians and offered relief to licensed Value Added Service (VAS) providers caught in the dispute. Justice A. Lewis-Allagoa in Lagos, on April 15, 2026, granted four interim injunctions in suit FHC/L/CS/760/2026 filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against the FCCPC. The court restrained the commission, its officers, and agents from enforcing the DEON Regulations, including several key provisions. It further barred the FCCPC from interfering with WASPA members’ operations, imposing sanctions or fines for alleged non-compliance, or issuing directives connected to the regulations. The case was adjourned to April 27, 2026, for further hearing.
Similarly, the Federal High Court in Abuja on April 24, 2026, granted an interim order in suit FHC/ABJ/CS/779/2026 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 operators, their officers, and agents from suspending, restricting, or interfering with Nairtime Nigeria Limited’s access to their platforms, including short codes, SMS, USSD, and billing services. The order applies 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 as a basis for any disruption.
The applicants argued that the planned suspension of services was based on a directive linked to the DEON Regulations, despite their compliance with contractual obligations and the absence of any established breach or required notice. The court found sufficient grounds to grant interim relief pending the determination of the substantive suit.
Impact of the Rulings
Together, the two rulings effectively place the enforcement of the DEON Regulations on hold, creating a temporary legal framework that allows airtime lending and related services to continue. The FCCPC is restrained from acting against VAS providers, while telecom operators are prevented from using the regulations to deny licensed operators access to their networks.
The DEON Regulations, introduced by the FCCPC in July 2025, were designed to extend regulatory oversight to unsecured digital lending, including airtime and data credit services. However, the move triggered strong opposition from industry stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria (ALTON), which argued that the regulations encroached on the statutory mandate of the NCC, created overlapping compliance obligations, and conflicted with an existing memorandum of understanding between both regulators. ALTON had raised these concerns with the NCC as far back as August 2025, warning that unresolved jurisdictional conflicts could disrupt the market.
Substantive Cases Pending
Although the rulings provide immediate relief for operators and consumers, they remain interim measures. The substantive suits before the courts will ultimately determine the legality and scope of the FCCPC’s authority over digital lending within the telecommunications sector. Industry observers await further hearings to see if the courts will permanently strike down the regulations or uphold them with modifications.
