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More than 40 million low-income Nigerians who rely on airtime borrowing services may again face 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 determination of an appeal, the Wireless Application Service Providers Association of Nigeria (WASPAN) has warned.
The warning is contained in an affidavit deposed to by WASPAN Chairman, Ayo Stuffman, in support of the association’s application for an injunction pending appeal against the 20 July judgment of the Federal High Court in Lagos, which upheld the FCCPC’s powers to issue and enforce the DEON Regulations.
The dispute, in Suit No. FHC/L/CS/760/2026, centres on whether the FCCPC has the legal authority to regulate telecommunications-based airtime lending services or whether such powers reside exclusively with the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.
Following the judgment, WASPAN filed a notice of appeal on 21 July and is asking the court to restrain the FCCPC from implementing the regulations until the Court of Appeal determines the substantive issues.
In the affidavit, Stuffman said the association became concerned after the FCCPC issued a statement immediately following the judgment announcing that implementation of the DEON Regulations had resumed.
According to him, the Commission declared that the legal obstacle which had prompted the temporary suspension of enforcement had been removed and that the regulations were once again “fully operational and enforceable.”
Stuffman argued that immediate enforcement of the regulations before the appeal is heard could expose operators to sanctions, create regulatory uncertainty and disrupt services relied upon by millions of subscribers.
“I know for a fact that unless restrained by the orders of this Honourable Court, the Defendant will proceed to enforce the said regulations against members of the Plaintiff,” he stated in the affidavit.
He further deposed that, unless restrained, WASPAN members would continue to suffer regulatory uncertainty, exposure to sanctions and disruption of their lawful business activities if the FCCPC commences full implementation of the regulations.
The association maintained that its members were already being “constrained and overridden” in the exercise of their operational freedom under the NCC, their primary regulator, through what it described as the FCCPC’s additional regulatory controls, partnership approvals and service agreement requirements.
Stuffman also argued that any enforcement action while the appeal is pending would render the substantive issues before the Court of Appeal nugatory and defeat the purpose of the appeal.
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According to the affidavit, Senior Advocate of Nigeria Chukwudi Enebeli, who represents WASPAN, advised that the appeal raises substantial and arguable legal questions concerning the extent of the FCCPC’s regulatory powers over telecommunications services.
The legal advice attached to the affidavit further stated that there is a real likelihood that implementation of the regulations could disrupt the businesses of WASPAN members while the appeal is awaiting determination.
WASPAN contended that refusing its application for an injunction would effectively create a fait accompli before the appellate court has an opportunity to determine the legality of the regulations.
The dispute has drawn significant industry attention because of its potential impact on Nigeria’s airtime lending ecosystem, estimated by industry stakeholders to be worth between ₦300 billion and ₦400 billion annually and used regularly by about 40 million Nigerians, particularly low-income earners, traders, artisans and other participants in the informal economy.
Earlier in the proceedings, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argued that airtime credit is not a conventional financial product but an essential telecommunications service that enables millions of Nigerians to remain connected, particularly during emergencies.
The regulatory disagreement 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 preserving the status quo is necessary to prevent another disruption that could affect millions of subscribers nationwide.
The FCCPC, however, maintained that it would continue to enforce the regulations following the court’s decision.
The Commission’s Director of Corporate Affairs, Ondaje Ijagwu, said: “The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance.”
He added: “Now that the Court has affirmed the validity of the DEON Regulations, the Commission will continue to discharge its statutory responsibilities faithfully, professionally and in accordance with the law.”
