The legal battle between the Wireless Application Service Providers Association of Nigeria (WASPAN) and the Federal Competition and Consumer Protection Commission (FCCPC) has intensified, with industry stakeholders warning that the outcome could reshape the regulation of Nigeria’s estimated ₦400 billion airtime credit market.
WASPAN has approached the Court of Appeal to challenge the Federal High Court’s decision affirming the FCCPC’s oversight of digital lending services under the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
The association filed a Notice of Appeal alongside a Motion on Notice seeking an injunction to stop the FCCPC from enforcing the regulations until the appellate court determines the dispute. It argued that immediate enforcement could expose its members to sanctions and disrupt their operations before the appeal is heard.
The appeal followed the FCCPC’s announcement that it had resumed full enforcement of the DEON Regulations after the Federal High Court in Lagos dismissed WASPAN’s suit challenging the commission’s authority over digital lending. The FCCPC said the court ruling had removed all legal barriers to implementing the regulatory framework across digital lending services, including telecommunications-enabled credit products.
Regulatory Powers at the Centre of Dispute
At the heart of the case is the question of where the authority of sector-specific regulators ends and that of cross-sector consumer protection agencies begins.
WASPAN maintains that Value Added Service (VAS) providers, including companies offering airtime credit services, are licensed and regulated by the Nigerian Communications Commission (NCC) under the Nigerian Communications Act 2003. However, the FCCPC insists that its mandate under the Federal Competition and Consumer Protection Act (FCCPA) 2018 extends across all sectors where consumer rights and competition issues arise, including digital lending.
In its judgment, the Federal High Court upheld the FCCPC’s authority to regulate market conduct and consumer protection but clarified that the commission has no statutory power to issue telecommunications licences, a responsibility reserved exclusively for the NCC.
Justice Ambrose Lewis-Allagoa also introduced the principle of “regulatory concurrency,” stating that overlapping statutory responsibilities can coexist as long as each regulator operates within the limits of its legal mandate.
Industry Calls for Clarity
Reacting to the judgment, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the commission remains committed to protecting consumers through the DEON framework, which targets unfair charges, unauthorised lending practices and anti-competitive conduct.
Meanwhile, Association of Licensed Telecommunications Operators of Nigeria (ALTON) Chairman, Gbenga Adebayo, welcomed the court’s affirmation of the NCC’s role as the country’s sole telecommunications licensing authority. He, however, urged stronger collaboration between regulators to prevent disruptions to services relied upon by millions of Nigerians.
WASPAN spokesperson Osa Umweni said the appeal is not aimed at eliminating consumer protection but at securing judicial clarity on the legal limits of concurrent regulation.
According to him, the High Court’s finding that the FCCPC cannot function as a telecommunications licensing authority reinforces the association’s position that the NCC remains its primary regulator.
Implications for Nigeria’s Digital Economy
Analysts say the appeal could have far-reaching consequences beyond airtime credit services.
As telecommunications increasingly intersects with financial technology, digital payments and e-commerce, businesses are becoming subject to multiple regulators with overlapping mandates. The Court of Appeal’s decision is expected to provide greater legal certainty for investors, define future compliance obligations for operators and influence how consumer protection is balanced with sector-specific regulation.
The case is particularly significant because an estimated 40 million Nigerians depend on airtime credit services to stay connected between income cycles. The outcome of the appeal could therefore shape the future regulatory landscape of one of Africa’s largest and fastest-growing digital markets.
