FCCPC’s Digital Lending Oversight Powers Affirmed in Landmark N400bn Airtime Credit Ruling
The Federal High Court in Lagos has delivered a pivotal judgment, unequivocally affirming the Federal Competition and Consumer Protection Commission (FCCPC) powers to regulate Nigeria’s digital consumer lending market. This landmark ruling, issued on July 21, 2026, is poised to reshape oversight of the nation’s estimated N400 billion airtime credit industry.
In a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), Justice Ambrose Lewis-Allagoa dismissed the challenge in its entirety. The court held that the FCCPC acted entirely within its statutory and constitutional mandate when issuing the Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations. This judgment removes a significant legal impediment that had temporarily restrained the commission from enforcing these crucial regulations against operators within the digital lending ecosystem, including providers of Airtime Credit Services (ACS).
The court’s decision in Suit No. FHC/L/CS/760/2026 found the challenged provisions of the DEON Regulations to be intra vires the FCCPC and constitutionally valid. Justice Lewis-Allagoa determined these measures are essential for protecting consumers and preventing anti-competitive conduct. The FCCPC was represented by Olufunke Aboyade, SAN, while Kemi Pinheiro, SAN, led WASPAN’s legal team.
The court’s reasoning underscored the FCCPC’s regulatory jurisdiction, drawing from Sections 16(2)(c), 16(3), and 17(2)(d) of the 1999 Constitution (as amended) and Item 60(a) of the Exclusive Legislative List, which grants economy-wide authority over competition and consumer protection. Furthermore, Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA), 2018, were cited as granting the FCCPC precedence in these matters, while acknowledging that sector regulators retain their technical, licensing, and prudential responsibilities. The court clarified that the relationship between the FCCPC and sector regulators is complementary, not conflicting, stating, “Concurrency means coexistence, not displacement.” The DEON Regulations, therefore, do not usurp the statutory powers of the Nigerian Communications Commission (NCC).
Justice Lewis-Allagoa found that the regulations, when interpreted as consumer protection and competition measures rather than a licensing regime for communications services, fall squarely within the FCCPC’s powers under Section 163 of the FCCPA, read in conjunction with Sections 1, 2, 17, and 18 of the Act. The contention that the regulations conflicted with the Nigerian Communications Act, 2003, was rejected, with the court holding that both statutes can be harmoniously interpreted, with the FCCPA providing the applicable legal framework for competition and consumer protection issues, subject to the constitution.
The court dismissed all declarations sought by WASPAN and refused all reliefs contained in the Originating Summons, thereby dismissing the suit entirely. Consequently, the four interim ex parte injunctions granted on April 15, 2026, restraining the enforcement of the DEON Regulations, were discharged, as the basis for their issuance had ceased to exist. The judge noted that statutory regulators should not ordinarily be restrained from performing their lawful duties.
The FCCPC was granted its cross-reliefs, affirming its empowerment under Section 163 of the FCCPA to regulate conduct in the digital lending market, prevent anti-competitive practices, and protect consumers. The court explicitly clarified that the FCCPC’s authority operates alongside, not in place of, the NCC’s regulatory powers. In recognition of the public importance of the issues, no order as to costs was made.
The suit originated from the FCCPC’s introduction of the DEON Regulations, a response to widespread concerns over the conduct of online lenders. The commission subsequently extended this framework to Airtime Credit Services, where subscribers receive airtime or data in advance and repay later with a service charge. WASPAN had argued that airtime lending constituted a telecommunications value-added service exclusively regulated by the NCC, and that subjecting operators to FCCPC oversight would lead to dual regulation, increased compliance costs, and threaten service sustainability. The FCCPC, however, maintained that deferred-payment airtime and data services are forms of digital consumer lending, falling under its mandate.
This judgment is expected to have significant implications beyond the telecommunications sector, offering judicial clarity on the interplay between sector-specific regulators and the FCCPC’s economy-wide consumer protection and competition mandate. It will also serve as a guide for regulating emerging digital financial products where regulatory responsibilities may overlap. Following the ruling, the FCCPC announced the immediate resumption of full implementation and enforcement of the DEON Regulations, 2025.
Ondaje Ijagwu, FCCPC’s Director of Corporate Affairs, stated that the commission would continue to discharge its statutory responsibilities faithfully and professionally, emphasizing that the regulations aim to promote responsible lending, enhance regulatory accountability, curb unfair practices, and strengthen consumer protection within Nigeria’s digital lending market. The objective, he added, is to foster innovation and financial inclusion within a transparent, fair, and accountable regulatory framework.
