A Federal High Court has upheld Nigeria’s digital lending regulations while ruling that the Federal Competition and Consumer Protection Commission cannot license telecommunications operators or regulate airtime lending, handing both regulators a partial victory in a dispute that disrupted services for millions of mobile subscribers.
The judgment, delivered by Justice Ambrose Lewis-Allagoa, dismissed a suit filed by the Wireless Application Service Providers Association of Nigeria, which had sought to nullify the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025. While the court affirmed the validity of the regulations, it ruled that the commission’s powers do not extend to issuing licences within the telecommunications sector.
The ruling resolves months of regulatory uncertainty over Nigeria’s rapidly growing airtime and data credit market. In April, major telecom operators, including MTN Nigeria, Airtel Nigeria and Globacom, suspended emergency airtime and data lending services after the FCCPC classified the products as digital loans subject to its lending regulations. The services were later restored after the commission suspended enforcement pending the outcome of the court case.
Industry estimates put the value of Nigeria’s airtime and data credit market at between ₦300 billion ($195.8 million) and ₦400 billion ($261.1 million) annually, with about 40 million subscribers relying on the services to access airtime and mobile data when they run out of credit. The disruption highlighted the growing importance of airtime lending as a financial service in Africa’s largest telecommunications market.
In its judgment, the court said the FCCPC’s consumer protection mandate coexists with, rather than replaces, the statutory responsibilities of the Nigerian Communications Commission. It held that the NCC retains exclusive authority over telecommunications licensing, technical regulation and prudential oversight, while the FCCPC continues to exercise its competition and consumer protection functions.
The decision also raises questions over licences previously issued by the FCCPC to companies offering airtime and data credit services. Although the court did not invalidate those approvals, it reaffirmed that telecommunications licensing falls solely within the NCC’s jurisdiction, potentially requiring closer coordination between both regulators going forward.
The FCCPC welcomed the judgment, saying it removes the legal obstacle preventing enforcement of its digital lending regulations. WASPAN also described the outcome as a mixed result, noting that while its attempt to overturn the regulations failed, the court agreed that the commission lacks the authority to issue telecommunications licences.
Industry stakeholders say the ruling provides long-awaited regulatory clarity for operators, fintech companies and consumers. However, they argue that the FCCPC and NCC must now establish a clear framework for cooperation to prevent future jurisdictional disputes. Such coordination is expected to support continued growth in Nigeria’s expanding digital lending market while ensuring consumer protection and regulatory certainty for one of the country’s fastest-growing financial technology segments.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
Sophie Okonedo (Nigeria/British)
Most Famous Movie: Hotel Rwanda (2004)
Short Bio: A British actress with Nigerian heritage, Sophie Okonedo is known for her compelling and nuanced performances. She received an Academy Award nomination for Best Supporting Actress for her role in Hotel Rwanda and has appeared in various films and television series, including Dirty Pretty Things and The Secret Life of Bees.
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