The ongoing dispute over Nigeria’s airtime lending market has shifted attention from questions of consumer protection and market control to concerns over regulatory transparency, evidence-based policymaking, and due process.
- +FCCPC faces questions over regulatory process, market data claims
Industry stakeholders have raised questions over the process through which the Federal Competition and Consumer Protection Commission (FCCPC) extended its digital lending regulations to cover telecom airtime credit services, arguing that key regulatory decisions were made without sufficient disclosure of supporting assessments.
Industry stakeholders have raised questions over the process through which the Federal Competition and Consumer Protection Commission (FCCPC) extended its digital lending regulations to cover telecom airtime credit services, arguing that key regulatory decisions were made without sufficient disclosure of supporting assessments.
The concerns were highlighted by Ladi Ogunseye, a startup operator and writer on consumer behaviour, entrepreneurship, business strategy, and marketing technology, who argued that the debate has increasingly been framed around national sovereignty rather than the regulatory issues at the centre of the dispute.
The legal challenge before the Federal High Court, Lagos, in Suit No. FHC/L/CS/760/2026 was filed by Nigerian-registered technology companies under the Wireless Application Service Providers Association of Nigeria (WASPAN), rather than foreign entities, according to Ogunseye.
The companies involved are NCC-licensed firms operating in Nigeria’s digital ecosystem, providing airtime credit services used by millions of consumers.
The case is expected to receive judgment on 20 July 2026, where Justice Ambrose Lewis-Allagoa will determine whether airtime credit services should be treated as telecommunications services or regulated as consumer lending products.
A major issue raised in the dispute is the absence of a Regulatory Impact Assessment (RIA) before the FCCPC extended its Digital, Electronic and Online Consumer Lending Regulations (DEON) to telecom airtime credit providers.
The Presidential Enabling Business Environment Council (PEBEC) had issued a directive requiring federal agencies to conduct RIAs before implementing major regulatory changes.
According to Ogunseye, the FCCPC has not published an assessment showing the economic impact of the policy change on the estimated 40 million Nigerians who rely on airtime credit services.
“The issue is not whether consumer protection is important, but whether regulatory interventions are being supported by transparent evidence and proper process,” Ogunseye said.
Another concern raised relates to the FCCPC’s approval of replacement operators under the DEON framework.
The commentary questioned the criteria used to select approved companies, citing an investigation by the Foundation for Investigative Journalism (FIJ) which examined the corporate profile of one approved firm, Rane Interaktive Medien CLS Limited.
The report alleged that the company was incorporated less than a year before receiving approval from the FCCPC, raising questions about how it met operational capacity and disclosure requirements under the lending regulations.
The FCCPC has not publicly addressed the concerns raised around the approval process.
The dispute has also drawn attention to the valuation of Nigeria’s airtime credit market. A N3 trillion market figure cited in media reports has been questioned with claims that no methodology or data source supporting the estimate has been made public.
Meanwhile, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), through its chairman Gbenga Adebayo, has previously estimated the Nigerian airtime credit market at between N300 billion and N400 billion annually.
An independent report published in August 2025 also placed the market within a similar range. Experts say the difference between the estimates highlights the need for transparent regulatory data, especially when major policy decisions are involved.
The FCCPC’s intervention was designed around consumer protection concerns, including oversight of digital lending practices and ensuring accountability among operators.
The court’s decision in July is expected to provide clarity on the classification and regulatory direction of airtime credit services in Nigeria.
Until then, stakeholders continue to debate whether the FCCPC’s approach represents necessary consumer protection or whether the process requires further justification through publicly available evidence and impact assessment.
