More than 40 million Nigerians who rely 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 delivers its judgment, 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.
The Federal High Court upheld the FCCPC’s authority to issue and enforce the DEON Regulations.
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 lies 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 matter.
According to Stuffman, the association became concerned after the FCCPC announced that implementation of the DEON Regulations had resumed, stating that the legal barrier to enforcement had been removed and the rules were fully operational.
He argued that enforcing the regulations before the appeal is heard could expose operators to regulatory sanctions, create uncertainty within the telecommunications sector and disrupt airtime borrowing services used by millions of Nigerians.
Stuffman said the regulations would subject WASPAN members to additional regulatory controls, partnership approvals and service agreement requirements, despite their operations already being supervised by the NCC.
He maintained that immediate enforcement could interfere with legitimate business activities and render the appeal ineffective if the Court of Appeal eventually rules in the association’s favor.
WASPAN also relied on legal advice from Senior Advocate of Nigeria, Chukwudi Enebeli, who argued that the appeal raises significant legal questions regarding the extent of the FCCPC’s regulatory authority over telecommunications services.
The association contended that denying its request 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 drawn widespread industry attention because of its potential impact on Nigeria’s airtime lending market, which is estimated to be worth between ₦300 billion and ₦400 billion annually.
The service is widely used by low-income earners, traders, artisans and other participants in the informal sector, with about 40 million Nigerians relying on airtime credit to stay connected.
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.
The association said the service enables millions of subscribers to remain connected, particularly 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 case.
WASPAN is now seeking similar protection while its appeal is pending, insisting that preserving the status quo is necessary to prevent another disruption affecting millions of subscribers.
However, the FCCPC said it would continue enforcing the DEON Regulations following the Federal High Court’s decision.
The commission’s Director of Corporate Affairs, Ondaje Ijagwu, said the agency remains committed to upholding the rule of law and will continue carrying out its statutory responsibilities in line with the court’s judgment.
