The Federal High Court in Lagos has refused a fresh application by the Federal Competition and Consumer Protection Commission (FCCPC) seeking to lift an interim injunction that prevents it from enforcing parts of its controversial Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025 against members of the Wireless Application Service Providers Association of Nigeria (WASPAN). 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.
Background of the Legal Dispute
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 WASPAN on April 14. The order specifically restrained the FCCPC, its officers, agents, and representatives from implementing or enforcing the disputed provisions of the DEON Regulations pending further hearing. WASPAN had approached the court, arguing that some sections of the regulations unfairly targeted telecom-based lending services and imposed compliance obligations beyond the commission’s legal powers.
FCCPC Pushes to Vacate Court Order
At the resumed hearing on April 28, 2026, which was originally fixed for the hearing of WASPAN’s motion for interlocutory injunction, the FCCPC urged the court to either proceed immediately with the matter or discharge the existing interim injunction. The commission argued that the restraining order should not remain in place while the matter was still being contested. However, WASPAN strongly opposed the request, insisting that the FCCPC had only recently served its preliminary objection and that fairness required enough time for the association to prepare its response. The association also warned that lifting the injunction would effectively hand the regulator unchecked authority to enforce rules whose legality is still under active judicial review.
Court Orders Full Hearing, Maintains Injunction
After listening to both parties, Justice Lewis-Allagoa declined the FCCPC’s request to vacate the injunction. Instead, the judge ruled that both the substantive suit and the FCCPC’s preliminary objection would be heard together to ensure a comprehensive determination of the issues. The court subsequently adjourned the matter to May 15, 2026, while affirming that the interim injunction remains fully in force.
Relief for Telecom-Based Lending Providers
The ruling preserves temporary legal protection for value-added service providers operating airtime lending, data borrowing, and similar digital financial services. WASPAN maintains that while consumer protection is necessary, parts of the FCCPC regulations allegedly conflict with the statutory authority of the Nigerian Communications Commission (NCC), which regulates the telecom sector. The association also argues that the rules could create unlawful compliance burdens for licensed telecom operators and service providers already regulated under existing industry frameworks. For now, the court’s decision means FCCPC cannot enforce the disputed provisions until the legal battle is fully resolved.
FCCPC Under Fire as Subscribers Lament Suspension
Legit.ng earlier reported that the temporary suspension of airtime and data loan services by major telecommunications operators, including MTN and Airtel, has triggered widespread outrage among subscribers, with many describing the move as harsh, poorly timed, and damaging to their livelihoods. Several subscribers in the Federal Capital Territory (FCT) who spoke on Monday accused the Federal Competition and Consumer Protection Commission (FCCPC) of failing to consider the daily realities of ordinary Nigerians before directing the suspension. The affected services, commonly used by millions of subscribers to borrow airtime or data during emergencies, were halted as telecom operators moved to comply with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.
