Telecom
FCCPC Denies Banning Airtime Borrowing, Blames Cartel for Misinformation
Federal Competition and Consumer Protection Commission (FCCPC) has dismissed widespread claims that it banned airtime borrowing and data advance services in Nigeria, describing the reports as false and driven by vested interests seeking to mislead the public.
In a statement issued on Friday, the commission said it neither cancelled nor prohibited such services, contrary to viral social media posts and some media reports suggesting otherwise.
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.
Recall that 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.
But FCCPC, said no such directive was issued, stressing that consumers remain free to access lawful telecom value-added services.
Ondaje Ijagwu, director of Corporate Affairs, FCCPC, said that “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.
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“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.
Friday’s clarification signals a push by the regulator to reclaim the narrative, reassure consumers, and shift responsibility to operators who have yet to fully comply with the law.
The Commission reaffirmed its commitment to protecting consumers while fostering innovation and fair competition in the sector, noting that regulatory compliance remains non-negotiable for all service providers operating in the Nigerian market.
Wireless Application Service Providers Association of Nigeria (WASPAN) has asked the Court of Appeal to suspend the enforcement of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
WASPAN warned that the implementation before the determination of its appeal could expose telecom value-added service providers to sanctions and disrupt their operations.
Millions of subscribers across the country rely on borrowed airtime to communicate.
Seun Sofoluwe, an Abeokuta, Ogun State resident, said another interruption would have severe consequences for many Nigerians who depend on airtime and data lending services for their daily communication needs.
“A lot of people depend on the services, and it will be very bad for them, especially those who are so reliant on it that they do debt-to-debt servicing,” he said.
Debt-to-debt servicing refers to the practice of repaying an outstanding airtime loan immediately to qualify for another advance, underscoring the extent to which some subscribers depend on the facility to remain connected.
Sofoluwe’s concerns echo the experience of Lagos-based employee Farouk Rabiu, who recounted the hardship caused by the six-month suspension of airtime lending services before they were restored.
“I was devastated because, after exhausting my data, I was hoping to borrow credit to access my bank account. Instead, it was a major disappointment,” Rabiu had said after the services resumed.
Adding another dimension to the debate, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the earlier disruption showed that airtime credit had evolved far beyond a conventional telecommunications offering.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” Adebayo said.
WASPAN, which represents licensed value-added service providers, has asked the Court of Appeal to restrain the FCCPC from enforcing the DEON Regulations pending the hearing of its appeal against the July 20 judgment of the Federal High Court in Lagos.
The association argued that immediate enforcement would expose operators to sanctions, create regulatory uncertainty and disrupt telecom-enabled services, including airtime credit and data advances, used daily by millions of Nigerians.
The FCCPC, however, has defended the resumption of enforcement, insisting the regulations are intended to sanitise the digital lending industry, curb predatory debt recovery practices, protect consumer data and eliminate illegal digital lenders.
The Court of Appeal is expected to determine whether enforcement of the regulations should remain suspended while it considers WASPAN’s appeal, a decision that could shape the future of telecom-based digital lending services and determine whether subscribers continue to enjoy uninterrupted access to airtime and data credit.
Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have entered into a partnership to deploy renewable energy solutions for telecommunications infrastructure in rural and underserved communities, a move expected to reduce operators’ energy costs and improve network availability.
Abraham Oshadami, executive commissioner for Technical Services at the NCC, disclosed this during the signing of a memorandum of understanding (MoU) in Abuja.
According to Oshadami, the NCC-REA Stakeholder Forum and MoU signing ceremony will enable telecom base stations located near mini-grids to access cleaner and more affordable electricity, reducing their reliance on diesel-powered generators.
He said the agreement came at a time when telecom operators are facing rising operational costs due to increased spending on diesel to power network sites amid unreliable electricity supply from the national grid.
The partnership reflects the growing relationship between the power and telecommunications sectors, as both rely on each other to deliver essential services.
Oshadami explained that while telecom infrastructure requires a steady power supply to remain operational, digital connectivity also supports electricity services such as smart metering, electronic payments and remote customer management.
According to him, the collaboration is aimed at improving access to reliable electricity and telecommunications services, particularly in remote communities where inadequate power supply has slowed digital inclusion.
He said both agencies had identified telecom base stations located within one to two kilometres of existing mini-grids, allowing the implementation of the initiative to begin immediately.
“Where mini-grids exist, we are able to identify nearby base stations and connect them to those power sources,” Oshadami said.
He added that future mini-grid projects would be planned with telecommunications infrastructure in mind, ensuring that electricity investments also support the expansion of digital services.
Airtel Nigeria has secured a fresh 10-year renewal of its spectrum licence from the Nigerian Communications Commission (NCC), reinforcing the telecom operator’s long-term commitment to expanding broadband connectivity and improving digital access across the country.
The renewed licence covers Airtel’s spectrum holdings, which are critical to the delivery of voice and high-speed data services, providing regulatory certainty for continued investments in network expansion, capacity upgrades and improved customer experience.
According to the company, the renewal underscores confidence in Nigeria’s telecommunications sector and will support its ongoing efforts to bridge the country’s digital divide by extending quality connectivity to more underserved communities.
Sunil Taldar, chief executive officer, Airtel Africa, said the renewal provides the company with the confidence to continue investing in Nigeria’s digital infrastructure.
He said, “The spectrum renewal reaffirms our long-term commitment to Nigeria, our largest market. It gives us the certainty required to continue investing in network expansion, improve service quality and accelerate digital inclusion for millions of Nigerians.”
Taldar added that Airtel remains focused on expanding broadband access and supporting Nigeria’s digital economy agenda through sustained investments in telecommunications infrastructure.
He further said, “We appreciate the Nigerian Communications Commission and the Federal Government for their continued support in creating an enabling environment for investment. We remain committed to delivering reliable and affordable connectivity while contributing to Nigeria’s socio-economic development.”
Meanwhile, Industry observers said the licence renewal removes regulatory uncertainty and allows Airtel to pursue long-term capital investments, including the expansion of 4G and 5G networks, as demand for mobile data and digital services continues to grow across Nigeria.
The renewal comes as telecom operators continue to invest heavily in broadband infrastructure to meet rising data consumption and support government efforts to achieve Universal digital access.
Furthermore, It also aligns with the NCC’s objective of ensuring efficient spectrum management while encouraging sustained private sector investment in the country’s telecommunications industry.
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