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By Katherine Diakpomere
The notice of appeal filed by the Wireless Application Service Providers Association of Nigeria (WASPAN) against the Federal High Court judgment on the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations has renewed attention on the technology companies powering airtime credit and other mobile services, as stakeholders warn that the outcome could shape investment and innovation in Nigeria’s digital economy.
WASPAN is asking the Court of Appeal to review aspects of the judgment relating to the respective regulatory responsibilities of the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC), following the lower court’s decision affirming the FCCPC’s powers under the DEON Regulations, while maintaining that the NCC remains the statutory regulator of telecommunications services.
The appeal has reignited debate over the growing convergence between telecommunications and digital finance, with industry stakeholders arguing that stronger coordination among regulators had become imperative as digital services continue to evolve.
Although subscribers interact directly with mobile network operators, much of the technology enabling airtime credit services, data-on-credit and other digital financial services is provided by specialist technology companies operating behind the scenes.
The firms deploy artificial intelligence, real-time analytics, fraud management systems, automated credit decisioning and transaction processing platforms that enable operators and financial institutions to deliver digital services to millions of Nigerians within seconds.
Industry stakeholders identified Nairtime Nigeria Limited, the Nigerian operation of Optasia, which has operated in Nigeria since 2012, Creditswitch, fonYou Technologies Nigeria and ERL Telecoms Service Limited among the companies providing technology infrastructure supporting airtime credit, messaging, USSD integration and other value-added services across the country’s telecommunications networks.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the recent regulatory dispute demonstrated that airtime credit services had become critical economic infrastructure relied upon by millions of Nigerians.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” he said.
Reacting to the judgment, Adebayo said the court had reinforced the need for collaboration rather than institutional overlap.
“The court has done something important. It has confirmed the FCCPC’s authority, and in the same breath, affirmed that the NCC’s role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court’s reasoning requires,” he said.
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The Executive Vice Chairman of the NCC, Dr. Aminu Maida, has consistently maintained that the Commission remained committed to creating a predictable regulatory environment that supports innovation, protects consumers and encourages investment in Nigeria’s telecommunications sector.
Similarly, the FCCPC has maintained that the DEON Regulations were introduced to strengthen consumer protection in Nigeria’s rapidly expanding digital lending market, insisting that the framework was designed to promote responsible lending practices without displacing the statutory responsibilities of sector regulators.
WASPAN, however, argued in its appeal that aspects of the judgment required further judicial interpretation, particularly regarding the application of the DEON Regulations to telecommunications value-added services and wants the Court of Appeal to provide greater clarity on the respective responsibilities of both regulators.
Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, has also repeatedly advocated policy coordination among government institutions, saying regulatory alignment is essential to preserving legal certainty, promoting investment, encouraging innovation and strengthening Nigeria’s competitiveness as Africa’s leading digital economy.
“Regulatory coordination is not only essential to preserving legal certainty but is also fundamental to promoting investment, innovation, consumer confidence and Nigeria’s long-term competitiveness as Africa’s leading digital economy,” the minister said.
He had directed that the existing regulatory status quo should remain while cross-cutting digital economy issues undergo inter-agency harmonisation under the ministry’s coordination to prevent conflicting regulatory approaches.
Chief Executive Officer of Nairtime Nigeria and Optasia’s Chief Commercial Officer, Uchenna Agbo, said collaboration among regulators and industry participants remained essential to sustaining innovation and expanding access to digital financial services.
“Fair financial access is at the heart of our business and we are committed to working constructively with regulators and our partners as the legal process unfolds to promote a fair, transparent and inclusive digital ecosystem that benefits Nigeria and all Nigerians,” she said.
Industry analysts said technologies initially developed for airtime advances now support a wider range of services, including embedded finance, micro-credit, fraud prevention and automated collections, making technology infrastructure providers an increasingly important component of Nigeria’s digital economy.
They added that while the legal contest had shifted to the Court of Appeal, the broader issue remains how regulators could work together to encourage innovation, strengthen consumer protection and sustain investment in the digital infrastructure supporting millions of Nigerians every day.
