Court Confirms FCCPC’s Oversight of Airtime Lending, Excludes Licensing Powers
The Federal High Court in Lagos has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) has the legal authority to regulate consumer protection and competition in Nigeria’s airtime and data lending market, estimated to be worth over N400 billion annually.
Justice Ambrose Allagoa dismissed a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which challenged the Commission’s Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations as they apply to airtime and data credit services.
The judge held that the FCCPC can regulate consumer lending practices across different sectors, including telecommunications. However, the court also ruled that the Commission cannot issue licences to operators, stating that the Nigerian Communications Commission (NCC) remains the only agency empowered to license telecommunications companies.
Explaining the relationship between the two regulators, the judge said, “Concurrency means coexistence, not displacement.” He noted that both agencies can operate in the same sector while carrying out different responsibilities.
Reacting to the judgment, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the ruling affirmed the Commission’s legal mandate to protect consumers and promote responsible lending.
“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance,” he said, adding that the regulations are designed to curb unfair lending practices and strengthen consumer confidence.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) welcomed the judgment but urged the FCCPC and NCC to work together to prevent future regulatory disputes.
ALTON Chairman, Gbenga Adebayo, said, “Forty million Nigerians depend on these services. The industry is asking them to define how that works before any action that could disrupt access again.”
The judgment is expected to provide greater regulatory certainty for operators while strengthening protection for millions of Nigerians who rely on airtime and data borrowing services.
