The Federal High Court in Lagos, in a ruling delivered on April 15, 2026, in Suit No. FHC/L/CS/720/2026, granted interim orders restraining the defendant in the suit, the Federal Competition and Consumer Protection Commission, from enforcing provisions of the same lending regulations against the plaintiff, the Wireless Application Service Providers Association of Nigeria.
The Lagos court, presided over by Justice Ambrose Lewis-Allagoa, barred the commission from implementing key provisions of the regulations, imposing sanctions, or taking steps that could hinder service providers from continuing their operations pending the hearing of an interlocutory injunction.
The judge held,
“An Order of Interim Injunction is granted pending the hearing and final determination of the Motion for Interlocutory Injunction restraining the Defendant, whether by itself, officers, employees, agents, or such other persons howsoever named, from enforcing, implementing and/or otherwise giving effect to the enforcement and/or implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 (‘The DEON Consumer Lending Regulations’) or otherwise giving effect to the enforcement and/or implementation of paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29 and 32 of the said regulations.”
“That an Order of Interim Injunction is granted pending the hearing and final determination of the Motion for Interlocutory Injunction restraining the Defendant, whether by itself, officers, employees, agents, or such other persons howsoever named, from taking any steps towards interfering with or preventing the Plaintiff’s members from providing or continuing to provide or deploy any services or product governed by the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025 (‘The DEON Consumer Lending Regulations’).”
Why?
Airtime credit services, including MTN’s XtraTime and Airtel’s data credit offerings, were suspended in mid-April after both operators cited compliance obligations under the new regulatory framework introduced by the Federal Competition and Consumer Protection Commission.
The disruption affected millions of prepaid subscribers who rely on airtime borrowing as a form of short-term credit, with the suspension occurring without prior notice or a clear timeline for restoration.
The commission had introduced the DEON Regulations in July 2025, extending a licensing regime to cover digital and non-traditional consumer lending, including airtime and data credit services. Compliance deadlines were extended twice before enforcement actions commenced in April, prompting operators to suspend services amid regulatory uncertainty.
However, industry stakeholders, including the association and the plaintiffs, contend that the commission exceeded its statutory mandate, arguing that services delivered over telecom infrastructure licensed by the Nigerian Communications Commission fall within the regulatory purview of the telecoms regulator under the Nigerian Communications Act 2003.
Industry estimates place the annual value of airtime lending transactions between N500 billion and N1.2 trillion, driven largely by informal sector demand. Analysts say the services function as a critical microcredit system supporting small businesses, artisans, and low-income earners dependent on mobile connectivity.
Amid the WASPAN-FCCPC dispute, the Commission has maintained that it did not ban airtime credit services, insisting the suspensions were commercial decisions by operators.
The association has, however, urged the commission to comply with subsisting court orders and engage stakeholders to resolve the regulatory impasse. Both matters have been adjourned for an interlocutory hearing.
