The legal conflict surrounding Nigeria's airtime and data lending services has escalated significantly after a Federal High Court in Lagos initiated contempt proceedings against the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello.
Court Initiates Contempt Proceedings
Court documents from Suit No: FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against the FCCPC, reveal that Justice Ambrose Lewis-Allagoa issued a Form 49 notice. This notice directs Bello to appear before the court on May 22, 2026, to show cause why he should not be committed for contempt. The notice warns that Bello could face imprisonment if found guilty of disobeying the court's April 15 restraining order. The proceedings were served personally at the FCCPC headquarters in Abuja, marking a serious escalation in the dispute between telecom service providers and the consumer protection agency.
Dispute Over Digital Lending Rules
The controversy stems from the FCCPC's Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations 2025. These regulations were introduced to govern Nigeria's rapidly expanding digital credit industry, including airtime and data lending services. The rules impose stricter compliance requirements on operators, covering loan disclosures, debt recovery methods, and consumer data protection. The FCCPC argues that the framework is necessary to address widespread abuses in the digital lending market, citing thousands of consumer complaints related to loan apps and credit platforms. However, telecom operators and service providers contend that parts of the regulations encroach on areas reserved for the Nigerian Communications Commission (NCC).
Telecom Operators Push Back
The disagreement has already disrupted telecom services. MTN Nigeria suspended its Xtratime airtime lending service after raising concerns about compliance obligations tied to the regulations. WASPA subsequently approached the Federal High Court, arguing that the FCCPC lacks the legal authority to regulate the technical structure and activation systems of telecom-based lending products. At the center of the dispute is Regulation 24 of the DEON framework, which critics say directly interferes with telecommunications operations rather than consumer protection. Justice Lewis-Allagoa had earlier granted an interim injunction restraining the FCCPC from enforcing the regulations or penalizing WASPA members pending the case's determination.
Major Regulatory Test for Nigeria
Despite the court order, WASPA alleges that the FCCPC continued actions linked to enforcement of the regulations, prompting the contempt proceedings now facing Bello. Legal analysts say this case could redefine the boundaries between consumer protection oversight and telecom regulation in Nigeria. The outcome is also expected to shape the future of airtime and data credit services, which millions of Nigerians rely on daily for communication and emergency access.
Court Rejects FCCPC's Bid to Lift Injunction
Legit.ng earlier reported that the Federal High Court in Lagos refused a fresh application by the FCCPC seeking to lift an interim injunction stopping it from enforcing parts of the DEON Regulations 2025 against WASPA members. This decision is seen as a major relief for mobile service providers offering airtime lending, data advances, and other digital consumer credit services across Nigeria. Justice A. Lewis-Allagoa, presiding over Suit No: FHC/L/CS/760/2026, had earlier granted an interim injunction on April 15 following an ex parte motion filed by WASPA on April 14.
