The Wireless Application Service Providers Association of Nigeria (WASPAN) has accused the Federal Competition and Consumer Protection Commission (FCCPC) of approving additional firms under its Digital Economy and Online Lending (DEON) Consumer Lending Regulations, despite a subsisting court order and the commission's own suspension of the framework.
In a statement issued on Friday, WASPAN claimed that the FCCPC recently expanded the list of approved operators under the DEON framework from five to nine firms. The association noted that this expansion occurred while the regulations remain subject to ongoing litigation and an administrative suspension announced by the commission on May 22, 2026.
WASPAN Raises Concerns Over Regulatory Actions
The association described the development as troubling and expressed concerns about what it termed the continued creation of commercial rights under a framework currently restrained by the courts. Osa Umweni, chairman of regulatory and partnership at WASPAN, stated that the regulator's actions raise questions about its commitment to undertakings made before the court and the public.
"The continued creation of commercial rights under a regulatory framework subject to active judicial restraint and administrative suspension raises serious questions about the Commission's commitment to the undertakings it has made to the court and the Nigerian public," Umweni said.
Background of the Legal Dispute
The dispute stems from a suit filed by WASPAN at the Federal High Court in Lagos, marked FHC/L/CS/760/2026, challenging aspects of the DEON Consumer Lending Regulations 2025. According to the association, Justice Ambrose Lewis-Allagoa granted interim orders on April 15 restraining the FCCPC from enforcing the regulations, imposing sanctions on affected operators, or interfering with services provided by its members pending the determination of the case.
WASPAN also noted that an application by the FCCPC seeking to set aside the interim orders was dismissed by the court on April 28. The association argued that while the commission publicly announced the suspension of the DEON framework, it has continued to take steps that confer advantages on selected operators under the same regulatory regime.
WASPAN Calls for Full Compliance
"WASPAN reiterates its call for the FCCPC to fully and in substance comply with the orders of the Federal High Court, not merely in public statements," the statement said. "A court order is not a communications instrument to be acknowledged when convenient and disregarded when inconvenient. It is a binding judicial directive, and the Commission's officers are personally accountable for its observance."
The group said it supports efforts to strengthen consumer protection and improve standards in the digital lending ecosystem but maintained that regulatory interventions must be carried out within the confines of the law. WASPAN also alleged that some reports portraying operators in the sector as opponents of market reforms were inaccurate and designed to undermine companies whose rights are currently being protected by the courts.
FCCPC Yet to Respond
The FCCPC has yet to respond to the latest allegations publicly. The dispute highlights the growing tensions over the regulation of Nigeria's digital lending and value-added services sectors, with both regulators and industry operators seeking greater influence over a rapidly expanding market that caters to an estimated 40 million Nigerians.
Previously, Legit.ng reported that the FCCPC blacklisted 45 loan apps operating in Nigeria. The affected platforms were declared non-compliant with the Digital Lending Regulations, with authorities warning that they pose risks to users, including harassment, misuse of personal data, and exploitative lending practices. Nigerians are strongly advised to avoid these apps and instead use only FCCPC-approved lenders.
