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.

Federal court in Lagos has suspended the enforcement of Nigeria’s most comprehensive framework for regulating digital lending apps.

On April 15, Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos granted an interim injunction blocking the enforcement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025, better known as the DEON Regulations.

The order followed an urgent ex parte application filed the previous day by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), the industry body representing wireless application service providers operating mainly within the telecoms ecosystem.

The suit targets twelve specific provisions of the text, covering licensing, sanctions, compliance obligations and data-handling rules, according to court documentation published by Lawyard.

Until the next hearing on April 27, 2026, the regulator cannot impose sanctions, enforce compliance directives, or issue new instructions to WASPA members.

The judge also barred the Federal Competition and Consumer Protection Commission (FCCPC) from interfering with the ongoing commercial operations of association members.

The case pits two actors whose respective mandates the Nigerian legal framework has never clearly separated.

On one side stands the FCCPC — the federal agency established in 2018 to enforce consumer protection and competition — which gazetted the DEON Regulations on July 21, 2025, under sections 17, 18 and 163 of its founding Act.

In a press statement dated September 3, 2025, Tunji Bello, executive vice chairman, FCCPC,  justified the rules by citing “a long history of complaints” involving exploitative practices, data breaches, abusive debt recovery, and harassment.

On the other side, WASPA Nigeria contests the very legitimacy of the FCCPC’s intervention, arguing that services tied to telecoms — airtime credit, data loans, mobile-financing products — fall exclusively under the Nigerian Communications Commission (NCC), the telecoms regulator created by the Nigerian Communications Act of 2003.

In the affidavit deposed by Ayo Stuffman, the association contends that the FCCPC is acting ultra vires and creating a regulatory regime parallel to the NCC’s.

A jurisdictional war that stretches far beyond a procedural dispute

The conflict is not limited to a question of legal boundaries. It strikes at the commercial core of the market: who collects the licensing fees, who sets the operational conditions, who governs the financial products embedded in telecom networks.

Nigeria’s consumer credit stock reached 3.82 trillion naira at the end of December 2024, up 21.27% on September, according to Central Bank of Nigeria (CBN) data relayed by The Cable and AFP.

In the fourth quarter of 2024 alone, personal loans disbursed amounted to approximately 470 billion naira.

A growing share flows through mobile applications and telecom-embedded lending products — including MTN’s MoMo Airtime Lending, operated by the country’s largest telecom operator.

If the court validates WASPA’s position, these products fall outside the FCCPC’s scope and come under the sole authority of the NCC, a regulator historically less active on consumer protection issues.

Available data on demand illustrate the social stakes. Between 2021 and 2023, the FCCPC recorded more than 11,000 consumer complaints for harassment, data abuse and unethical debt recovery practices, according to the agency.

The number of lending applications approved by the FCCPC rose from 269 in September 2024 to 408 in March 2025, while 47 apps were delisted and 88 were placed on the watchlist, according to data compiled by AFP and OneSafe.

The DEON Regulations were meant to introduce interest-rate caps, precontractual disclosure obligations, continuous supervision of recovery practices and fines of up to 100 million naira per violation, according to Legit.ng. The compliance deadline was set for January 5, 2026, and the FCCPC had issued written compliance notices to operators with an April 16 deadline, according to WASPA’s affidavit.

It is precisely this enforcement pressure that triggered the legal challenge.

Federal government has said that Nigeria has no plans to seek a loan from the International Monetary Fund’s proposed $50 billion support package for economies hit by the Middle East crisis.

Wale Edun, minister of Finance, who stated this, said that Nigeria’s current reliance on domestic economic reforms and fund mobilisation was working.

Edun gave these insights during the African Finance Ministers’ briefing, on Thursday, at the ongoing IMF/World Bank annual meetings, in Washington, DC.

He noted that for over two years, Nigeria’s investment in economic reforms have begun to yield results, restoring policy credibility and strengthening the country’s resilience against global economic shocks.

Edun told the global west and the rest of the world that Nigeria now prioritises market-based adjustments, avoiding administrative controls, particularly in foreign exchange and petroleum pricing mechanisms.

His assertion follows the disclosure by the IMF that a possible $50 billion support to cushion vulnerable economies against the crisis in the Middle East, was on the pipeline.

Despite clarifying Nigeria’s lack of interest in borrowing, Edun, urged the IMF to ensure faster financial assistance for African countries who will need help from the $50 billion global support package.

“Nigeria has no plans at the moment to approach the IMF or any other such body,” Edun said, emphasising that Nigeria’s reliance on market mechanisms had led to smoother economic adjustments, reduced disruptions and is sustaining the country’s macroeconomic trajectory.

“The IMF talked about $50 billion and we all know that the funding will largely go to Africa, because those are the most vulnerable countries. And the reality is that what we’re asking for in this instance, is that the funds and the support be released quickly and at scale.