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More than 40 million Nigerians who depend on airtime borrowing services could face another disruption 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 Court of Appeal rules on the matter, 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 the July 20 judgment of the Federal High Court in Lagos, which upheld the FCCPC’s authority to issue and enforce the DEON Regulations.
The legal dispute, filed under Suit No. FHC/L/CS/760/2026, centres on whether the FCCPC has the statutory powers to regulate telecommunications-based airtime lending services or whether such authority rests exclusively with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.
Following the judgment, WASPAN filed a notice of appeal on July 21 and is seeking an order restraining the FCCPC from enforcing the regulations until the Court of Appeal determines the substantive issues.
In the affidavit, Stuffman said the association became alarmed after the FCCPC announced that implementation of the DEON Regulations had resumed, declaring that the legal impediment to enforcement had been removed and that the rules were now fully operational.
He argued that enforcing the regulations before the appeal is heard could expose operators to regulatory sanctions, create uncertainty within the telecommunications industry and disrupt airtime borrowing services relied upon by millions of Nigerians.
“Unless restrained by this Honourable Court, the Defendant will proceed to enforce the regulations against members of the Plaintiff,” Stuffman stated in the affidavit.
He maintained that the regulations subject WASPAN members to additional regulatory controls, partnership approvals and service agreement requirements, despite their operations already being regulated by the NCC.
According to him, immediate enforcement would interfere with their lawful business activities and could render the appeal meaningless if the Court of Appeal eventually rules in their favour.
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WASPAN also relied on legal advice from its counsel, Senior Advocate of Nigeria, Chukwudi Enebeli, who argued that the appeal raises substantial legal questions regarding the scope of the FCCPC’s regulatory powers over telecommunications services.
The association contended that refusing its application for an injunction would create a fait accompli before the appellate court has the opportunity to determine the legality of the regulations.
The dispute has attracted widespread industry attention because of its potential impact on Nigeria’s airtime lending market, estimated to be worth between ₦300 billion and ₦400 billion annually. The service is used regularly by about 40 million Nigerians, particularly low-income earners, traders, artisans and other participants in the informal sector.
Earlier in the proceedings, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argued that airtime credit is an essential telecommunications service rather than a conventional financial product, stressing that it enables millions of subscribers to remain connected, especially during emergencies.
The regulatory disagreement had previously led to the temporary suspension of airtime borrowing services by major mobile network operators before the Federal High Court granted interim relief allowing the services to resume pending the determination of the substantive suit.
WASPAN is now seeking similar protection pending the outcome of its appeal, insisting that maintaining the status quo is necessary to prevent another disruption that could affect millions of subscribers across the country.
However, the FCCPC said it would continue to enforce the DEON Regulations following the court’s decision.
The Commission’s Director of Corporate Affairs, Ondaje Ijagwu, said the agency remained committed to upholding the rule of law and would continue to discharge its statutory responsibilities professionally and in accordance with the court’s judgment.
