The recent suspension of regulations seeking to classify airtime and data credit services as consumer lending products has reignited concerns over regulatory overlaps in Nigeria’s telecommunications sector.
Industry stakeholders say the dispute between the Federal Competition and Consumer Protection Commission (FCCPC) and telecommunications operators exposed the risks of unclear regulatory boundaries, particularly for services relied upon by millions of Nigerians for daily communication and business activities.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has welcomed the FCCPC’s decision to suspend enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations against telecom operators, describing the move as a step towards restoring certainty in the sector.
The controversy began after telecom operators suspended airtime and data credit services following the FCCPC’s directive requiring compliance with the DEON framework, which classified airtime advances as a form of consumer lending. The move triggered a legal and regulatory dispute over whether such services fall under the jurisdiction of the FCCPC or the Nigerian Communications Commission (NCC), the statutory regulator of the telecommunications industry.
The disruption affected millions of subscribers who depend on airtime and data advances to remain connected, particularly low-income users and small business operators. Industry estimates place the annual airtime lending market at between N300 billion and N400 billion.
Speaking on the development, ALTON chairman, Gbenga Adebayo, said the FCCPC’s decision recognised the existing regulatory structure governing telecommunications services.
“We commend the FCCPC for taking this decision in the interests of Nigerian consumers and the telecommunications industry,” Adebayo said.
“Suspending the DEON regulations as they apply to telecom services recognises that the established regulatory architecture, with the NCC as the sector’s primary regulator, is the appropriate framework for governing these products. That recognition matters enormously for industry stability and investor confidence.”
According to him, the episode demonstrated the extent to which airtime credit services have become embedded in Nigeria’s digital economy.
“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. Removing that infrastructure, even temporarily, had consequences that went far beyond the telecom sector,” he said.
Following the suspension of the regulations and court interventions, Airtel Nigeria and Globacom have restored airtime credit services, while expectations remain that other operators will follow suit.
The FCCPC had earlier maintained that it did not ban airtime borrowing services but sought compliance with consumer protection regulations introduced in response to complaints relating to disclosure standards, deductions and lending practices. The commission argued that operators were given sufficient time to comply with the framework.
However, industry observers say the dispute highlights the growing complexity of regulating digital services that sit at the intersection of telecommunications and financial technology.
Hence, Engr. Adebayo called for stronger coordination between regulatory agencies to prevent similar disruptions in the future.
“The lesson is that Nigeria’s regulatory agencies need formal coordination protocols for services at the intersection of telecommunications and financial products. The FCCPC’s consumer protection mandate and the NCC’s telecom regulatory mandate can coexist without either displacing the other,” he said.
Meanwhile, stakeholders believe the outcome of ongoing legal proceedings and regulatory engagements could shape the future of airtime lending, digital credit services and broader innovation within Nigeria’s telecommunications sector.
For consumers, the episode has underscored how regulatory disputes can directly affect access to essential digital services, while for investors, it has renewed calls for policy consistency and clearer regulatory frameworks in one of Nigeria’s most critical economic sectors.
