FCCPC denies banning airtime borrowing, blames operators for service disruptions
The Federal Competition and Consumer Protection Commission has dismissed widespread claims that it banned airtime borrowing and data advance services in Nigeria, describing the reports as false, misleading, and driven by vested interests resisting regulatory reforms.
The Federal Competition and Consumer Protection Commission has dismissed widespread claims that it banned airtime borrowing and data advance services in Nigeria, describing the reports as false, misleading, and driven by vested interests resisting regulatory reforms.
The clarification follows a wave of public concern triggered by viral social media posts and some media reports suggesting that the Commission had shut down telecom-based credit services widely used by millions of Nigerians.
In separate notices, Airtel and MTN Nigeria announced the temporary suspension of their airtime and data credit services, which previously allowed eligible prepaid customers to borrow airtime or data and repay on their next recharge.
In a statement issued on Friday by its Director of Corporate Affairs, Ondaje Ijagwu, the commission said no such directive was issued, stressing that consumers remain free to access lawful telecom value-added services.
“The attention of the Federal Competition and Consumer Protection Commission has been drawn to a series of newspaper publications and a viral anonymous post on social media seeking to create the impression that the Commission cancelled, shut down, or banned airtime borrowing and data advance services in Nigeria. Those claims are incorrect.
“The Commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services,” the statement partly read.
Rather than a regulatory ban, the FCCPC attributed recent disruptions in some of these services to the failure of certain operators to comply with its Consumer Lending Regulations introduced in July 2025.
According to the Commission, the regulations were developed following a surge in consumer complaints over exploitative practices in the digital lending and advance-services space.
“Following a deluge of consumer complaints bordering on opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability in segments of the digital lending and advance-services market, the Federal Competition and Consumer Protection Commission issued the DEON Consumer Lending Regulations in July 2025.
“The Regulations were introduced, among other reasons, to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market,” it stated.
The agency said the framework was designed to sanitise the market and protect consumers by enforcing transparency, accountability, and fair competition.
“The primary aim is to promote a fairer and more transparent system by mandating proper registration, responsible lending conduct, clear disclosure of fees and terms, accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight,” the FCCPC explained.
Providing a deeper insight into the telecom sector, the Commission revealed that some operators had been engaged in anti-competitive practices, including exclusionary arrangements with third-party service providers.
“In the telecom sector, our findings indicated that some operators engaged in exclusionary third-party technical arrangements in clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018. The Regulations sought to unlock the market to allow local participants alongside foreign partners, in line with free market principles,” it said.
It added that the new regulations were also intended to open up the market to more participants, including local players, in line with free market principles.
Despite giving operators ample time to comply, the FCCPC said several companies failed to align with the new regulatory framework.
“These measures benefit Nigerians by reducing abusive practices, improving transparency, strengthening consumer choice, and encouraging responsible innovation by legitimate operators. At the commencement of the framework in July 2025, affected operators were granted an initial 90-day compliance period to regularise their products, structures, and operations. That opportunity was not utilised within the prescribed timeframe,” the statement noted.
The Commission said it extended the deadline to January 5, 2026, but compliance remained unsatisfactory.
“Despite that further extension, the necessary compliance steps were still not completed by the relevant operators,” it added.
The regulator stressed that any temporary suspension or restriction of services should be seen as a business decision by non-compliant operators rather than a government-imposed ban.
“Any temporary suspension, restriction, or operational change introduced by service providers should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC,” it said.
The Commission also accused certain interest groups of deliberately spreading false information to undermine reforms.
“We are aware that some vested interests and their foreign collaborators are opposed to the creation of safe markets and fair competition, therefore resorting to a campaign of disinformation,” it stated.
Describing such narratives as “mischievous,” the FCCPC urged Nigerians to disregard sensational claims and rely on verified information.
“It is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply. Nigerians deserve accurate information, not sensational claims.
“The FCCPC is fully committed to protecting consumers, promoting fair competition, encouraging responsible innovation, ensuring transparent digital financial practices, and working constructively with sector regulators and service providers in the public interest,” the statement added.
Airtime borrowing and data advance services have become critical tools for millions of telecom subscribers in Nigeria, allowing users to access credit for calls and internet services with repayment deducted upon recharge.
However, the segment has long been plagued by complaints over hidden charges, automatic deductions, unclear repayment terms, and aggressive recovery mechanisms.
The FCCPC’s intervention through the Consumer Lending Regulations marked one of the most significant attempts to regulate digital micro-lending and telecom-based credit services in the country.
The rules align with broader efforts by the Federal Government to strengthen consumer protection, enhance transparency in digital financial services, and curb exploitative practices in Nigeria’s rapidly expanding fintech and telecom ecosystem.
