The Wireless Application Service Providers Association of Nigeria (WASPAN) has filed an application for an injunction pending appeal, seeking to prevent the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations. The association argues that full enforcement could disrupt airtime lending services relied upon by over 40 million Nigerians.
Legal Challenge Filed to Avert Disruption
WASPAN filed a notice of appeal on July 21, 2026, one day after a Federal High Court in Lagos upheld the FCCPC's powers to issue and enforce the DEON Regulations. The association is now asking the court to restrain the FCCPC from implementing the regulations pending the determination of the appeal. According to an affidavit deposed by WASPAN Chairman Ayo Stuffman, the association became concerned after the FCCPC announced in a press statement that implementation of the DEON Regulations had resumed.
The FCCPC statement said: "The Federal Competition and Consumer Protection Commission (FCCPC) has resumed implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations). Accordingly, the legal impediment that had necessitated the Commission's temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable."
Industry Stakeholders Warn of Economic Impact
Stuffman argued in the affidavit that enforcing the regulations before the appeal is heard could expose WASPAN's members to sanctions, create regulatory uncertainty, and disrupt airtime lending services. The airtime lending ecosystem at the centre of the legal dispute is estimated by industry stakeholders to be worth between ₦300 billion and ₦400 billion annually. It is relied upon by approximately 40 million Nigerians, particularly low-income earners, traders, artisans, and others in the informal economy.
Stuffman also contended that WASPAN's members are already being constrained in their operations under the regulatory framework of the Nigerian Communications Commission (NCC) through what he described as the FCCPC's additional requirements relating to approvals, partnerships, and service agreements. Allowing the FCCPC to proceed with enforcement before the appeal is determined could undermine the reliefs being sought before the Court of Appeal and effectively render the appeal academic, he added.
FCCPC Defends Regulatory Authority
Responding after the July 20 judgment, the FCCPC maintained that it would continue implementing the regulations in line with the court's decision. The Commission's Director of Corporate Affairs, Ondaje Ijagwu, said: "The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. Now that the Court has affirmed the validity of the DEON Regulations, the Commission will continue to discharge its statutory responsibilities faithfully, professionally and in accordance with the law."
The legal dispute centers on whether the FCCPC has the legal authority to regulate telecommunications-based airtime lending services or whether that responsibility rests exclusively with the NCC under the Nigerian Communications Act, 2003. The suit is marked FHC/L/CS/760/2026.
Background of the Dispute
The regulatory disagreement previously resulted in the temporary suspension of airtime borrowing services by major mobile network operators. The Federal High Court granted interim relief, allowing the services to resume pending determination of the substantive suit. Earlier, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) had maintained that airtime credit is not a conventional financial product but critical communications infrastructure that enables millions of Nigerians to remain connected, particularly during emergencies.
WASPAN's counsel, Senior Advocate of Nigeria Chukwudi Enebeli, advised that the appeal raises "substantial, weighty, arguable and recondite issues of law" regarding the scope of the FCCPC's regulatory powers over the telecommunications sector. WASPAN argued that preserving the status quo pending the appeal is necessary to avoid another disruption to airtime borrowing services across the country.
Appeal Court to Determine Future
The Court of Appeal is expected to determine whether the High Court judgment should stand and whether the FCCPC can continue enforcing the regulations while the appeal is pending. In a related development, MTN Nigeria reinstated its airtime and data borrowing service, giving eligible subscribers access to emergency credit again after a temporary suspension caused by the regulatory disagreement. Qualified customers can borrow airtime or data by dialling *303#, subject to their approved credit limits. Similar moves by Airtel and Glo had resumed their services earlier.
