Court orders MTN, Airtel to restore airtime credit services

Millions of Nigerian telecom subscribers may soon regain access to airtime and data credit services after separate Federal High Court orders in Abuja and Lagos restrained enforcement actions tied to digital lending regulations.

The Federal High Court in Abuja, in a ruling delivered on April 24, 2026, restrained the respondents – telecommunications firms, MTN Nigeria Communications Plc and Airtel Networks Limited, from suspending or restricting services provided to Nairtime Nigeria Limited pending the determination of a substantive suit challenging regulatory actions linked to digital lending operations.

The interim order, contained in a Certified True Copy obtained on Tuesday, followed an ex parte application filed by Nairtime Holdings Limited and Nairtime Nigeria Limited, who approached the court over what they described as a threatened disruption of their business operations by the telecom operators.

In Suit No. FHC/ABJ/CS/779/2026, the plaintiffs argued that the defendants intended to suspend, discontinue, or otherwise interfere with their access to telecommunications platforms, including USSD channels, SMS, short codes, and billing services. They contended that the planned action was based on directives allegedly arising from the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025.

The plaintiffs maintained that such actions would constitute unlawful interference with their contractual rights and business operations, noting that they are licensed Value Added Service providers operating under valid approvals issued by the Nigerian Communications Commission.

They further asserted that they had complied with all contractual obligations and that no valid notice of breach had been issued by the defendants.

Ruling on the motion, the court granted an order of, “of Interim Injunction restraining the 1st and 2nd Defendants/Respondents, whether by themselves, their officers, servents, agents,or privies from suspending, restricting, discontinuing,or otherwise interfering with the access of the 2nd Plaintiff to their platforms, channeis, short codes, SMS, USSD, billing services and other telecommunications- enabled service and operetions during the subsistence of the 2nd Plaintiff’s valid licence issued by the Nigerian Communications Commission under and by virtue of the Nigerian Communications Act on the basis of the DEON Regulations issued by the Federal Republic of Nigeria”.

The court further held that telecom operators could not set aside agreed contractual notice periods and dispute-resolution mechanisms in a bid to comply with new regulatory directives.

The order specifically covers access to platforms, channels, short codes, SMS, USSD services, and other telecommunications-enabled operations utilised by Nairtime Nigeria Limited in delivering its airtime advance and digital lending services.

The court directed that the status quo be maintained pending the determination of the substantive suit, noting the subsistence of a valid licence held by the second plaintiff.

Similarly, the Federal High Court in Lagos, in a ruling delivered on April 15, 2026, in Suit No. FHC/L/CS/720/2026, granted interim orders restraining the defendant in the suit – Federal Competition and Consumer Protection Commission from enforcing provisions of the same lending regulations against the plaintiff – Wireless Application Service Providers Association of Nigeria.

The Lagos court, presided over by Justice Ambrose Lewis-Allagoa, barred the commission from implementing key provisions of the regulations, imposing sanctions, or taking steps that could hinder service providers from continuing their operations pending the hearing of an interlocutory injunction.

The judge held, “an Order of Interim Injunction is granted pending the hearing and final determination of the Motion for Interlocutory Injunction restraining the Defendant whether by itself, officers, employees, agents or such other persons howsoever named from enforcing, implementing and or otherwise giving effect to the enforcement and or implementation of the Digital, Electronic, Online or Non Traditional Consumer Lending Regulations 2025(“The Deon Consumer Lending Regulations”)or otherwise giving effect to the enforcement and or implementation of paragraphs 3,7,10,12,13,14,15,16,24,27,29 and 32 of the said regulations).

“That an Order of Ihterirm tnjunction is granted pending the hearing and final determination of the Motion for Interlocutory Injunction restraining the Defendant whether by itself, officers, employees, agents or such other persons howsoever named from taking any steps towards interfering with or preventing the Plaintiff’s members from providing or continuing to provide or deploy any services or product governed by the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025(“The Deon Consumer Lending Regulations”).

Airtime credit services, including MTN’s XtraTime and Airtel’s data credit offerings, were suspended in mid-April after both operators cited compliance obligations under the new regulatory framework introduced by the Federal Competition and Consumer Protection Commission.

The disruption affected millions of prepaid subscribers who rely on airtime borrowing as a form of short-term credit, with the suspension occurring without prior notice or a clear timeline for restoration.

The commission had introduced the DEON Regulations in July 2025, extending a licensing regime to cover digital and non-traditional consumer lending, including airtime and data credit services. Compliance deadlines were extended twice before enforcement actions commenced in April, prompting operators to suspend services amid regulatory uncertainty.

However, industry stakeholders, including the association and the plaintiffs, contend that the commission exceeded its statutory mandate, arguing that services delivered over telecom infrastructure licensed by the Nigerian Communications Commission fall within the regulatory purview of the telecoms regulator under the Nigerian Communications Act 2003.

Industry estimates place the annual value of airtime lending transactions between N500 billion and N1.2 trillion, driven largely by informal sector demand. Analysts say the services function as a critical microcredit system supporting small businesses, artisans, and low-income earners dependent on mobile connectivity.

The FCCPC has maintained that it did not ban airtime credit services, insisting that the suspensions were commercial decisions taken by the operators.

The association has, however, urged the commission to comply with subsisting court orders and engage stakeholders to resolve the regulatory impasse.

Both matters have been adjourned for an interlocutory hearing.