Court Issues Interim Injunction Against FCCPC's Digital Lending Regulations
A Federal High Court in Lagos has granted an interim injunction, restraining the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing critical provisions of its Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025. This legal action comes as MTN Nigeria announces the suspension of its popular airtime and data credit services, citing compliance with these same regulations.
Legal Challenge by Telecommunications Association
The court order was issued by Justice Ambrose Lewis-Allagoa following an ex-parte application filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria). The association, represented by senior advocate Kemi Pinheiro, argued that the FCCPC lacks statutory authority to regulate technical aspects of telecommunications services, which it contends fall under the Nigerian Communications Commission (NCC). WASPA Nigeria filed the suit on April 14, 2026, seeking urgent judicial intervention to halt what it describes as ultra vires provisions of the regulatory framework.
In its motion, WASPA urged the court to restrain the FCCPC from enforcing specific paragraphs of the regulations, including 3, 7, 10, 12-16, 24, 27, 29, and 32, and from imposing sanctions or compliance directives on its members. After reviewing supporting affidavits, Justice Lewis-Allagoa granted interim reliefs, preserving the status quo and halting enforcement actions pending the determination of the substantive suit.
MTN's Response to Regulatory Changes
In a related development, MTN Nigeria has temporarily suspended its Xtratime services, which allow customers to borrow airtime and data. The telecom giant explained this decision in a corporate filing to the Nigerian Exchange Limited, stating it is part of efforts to comply with the FCCPC's new digital lending regulations. This move highlights the immediate impact of the regulatory framework on major industry players, even as its enforcement faces legal challenges.
Implications for Nigeria's Fintech Ecosystem
The court ruling represents a temporary setback for the FCCPC, which introduced the regulations to strengthen oversight of Nigeria's rapidly growing digital lending and fintech sector. The regulations aim to enhance consumer protection, data privacy, and address unregulated lending practices. However, the legal dispute underscores tensions between regulatory bodies and industry stakeholders over jurisdictional boundaries and operational mandates.
The case has been adjourned to April 27, 2026, for the hearing of the motion on notice. This development signals ongoing debates about regulatory authority in Nigeria's evolving digital economy, with potential ramifications for consumer services and market stability.
