40 Million Nigerians Risk Fresh Airtime Loan Disruption as WASPAN Challenges FCCPC Rules

More than 40 million low-income Nigerians who depend on airtime borrowing services could face renewed disruptions if the Federal Competition and Consumer Protection Commission (FCCPC) resumes full enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 before the conclusion of an appeal, the Wireless Application Service Providers Association of Nigeria (WASPAN) has warned.

The warning is contained in an affidavit filed by WASPAN Chairman, Ayo Stuffman, in support of the association’s application for an injunction pending appeal against a July 20 judgment of the Federal High Court in Lagos, which affirmed the FCCPC’s authority to issue and enforce the DEON Regulations.

According to the association, immediate enforcement of the regulations could interrupt airtime lending services relied upon by millions of Nigerians, particularly low-income mobile subscribers who use the facility to remain connected during periods of financial difficulty.

The legal dispute, filed under Suit No. FHC/L/CS/760/2026, centers on whether the FCCPC has the statutory authority to regulate telecommunications-based airtime lending services or whether that responsibility rests solely with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.

The FCCPC had earlier suspended implementation of the DEON Regulations after a Federal High Court issued an interim order restraining enforcement. However, following the court’s July 20 judgment dismissing WASPAN’s suit and upholding the Commission’s regulatory powers, the FCCPC announced that the regulations had become fully operational once again.

The Commission has maintained that the DEON Regulations are intended to protect consumers by promoting transparency, responsible lending practices, data privacy and accountability across Nigeria’s digital lending ecosystem. It has also insisted that it never banned airtime borrowing or data advance services, attributing previous service disruptions to compliance decisions made by operators rather than regulatory prohibition.

Despite the judgment, WASPAN is asking the appellate court to halt enforcement pending the determination of its appeal, arguing that resuming implementation before the appeal is heard could adversely affect millions of subscribers and operators in the telecommunications value-added services market.

The outcome of the appeal is expected to shape the future regulatory framework for airtime lending services and determine the respective roles of the FCCPC and the NCC in overseeing the fast-growing segment of Nigeria’s digital financial services industry.