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Court orders restoration of airtime lending services

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Court orders restoration of airtime lending services

Two divisions of the Federal High Court have issued interim injunctions that effectively restore airtime lending services and halt the enforcement of controversial regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC), in a major relief for telecom service providers and millions of Nigerian users

The FCCPC had rolled out the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations in 2025, a move that later triggered legal challenges from industry stakeholders.

Court orders restoration of airtime lending services
Court orders restoration of airtime lending services

The rulings delivered in Lagos and Abuja not only suspended key provisions of the framework but also restricted attempts to enforce them against licensed Value Added Service providers.

In Lagos, Justice A. Lewis-Allagoa, on April 15, 2026, granted four interim injunctions in suit FHC/L/CS/760/2026 filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against the FCCPC.

The court stopped the commission, its officials, and agents from implementing the DEON Regulations, including critical sections of the policy. It further barred the FCCPC from taking enforcement actions against WASPA members, including sanctions, fines, or regulatory directives tied to the disputed framework. The matter was adjourned to April 27, 2026, for further hearing.

In a related decision in Abuja, the Federal High Court on April 24, 2026, granted an interim order in suit FHC/ABJ/CS/779/2026 following an ex parte application by Nairtime Holdings Limited and Nairtime Nigeria Limited against MTN Nigeria Communications Plc and Airtel Networks Limited.

The court restrained both telecom operators, along with their officials and agents, from suspending or restricting Nairtime Nigeria Limited’s access to critical platforms such as short codes, SMS, USSD, and billing systems.

The order remains in force for the duration of Nairtime’s valid licence issued by the Nigerian Communications Commission (NCC) and also prevents reliance on the FCCPC regulations as justification for any disruption of services.

The applicants had argued that the planned service suspension stemmed from a directive linked to the DEON Regulations, despite what they described as full compliance with contractual obligations and no established breach or prior notice.

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