Association of Licensed Telecoms Operators of Nigeria (ALTON), has called for urgent resolution of the regulatory dispute affecting the airtime credit market, warning that continued disruption could harm millions of Nigerians and undermine investor confidence.

Gbenga Adebayo, chairman, ALTON, in a statement on Tuesday, said the situation goes beyond a disagreement between regulators, describing it as a critical test of the country’s regulatory credibility.

“What is happening in the airtime credit market is not simply a dispute between regulators. It is a test of whether the structures that underpin business confidence in this country are functioning as they should.

“Court orders have been issued, businesses hold valid licences, and consumers are still being affected. We believe all parties have a responsibility to bring this to an orderly resolution,” he said.

The dispute stems from overlapping regulatory claims between the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) over the control of airtime credit and Value Added Services.

According to Adebayo, interims injunctions by Federal High Courts in Lagos and Abuja had restrained interference in the operations of licensed providers, including Nairtime Nigeria Limited and members of the Wireless Application Service Providers Association of Nigeria.

However, the continued disruption of services despite subsisting court orders has raised concerns across the telecom industry.

ALTON maintained that the regulatory framework for licensed Value Added Service providers falls under the NCC, warning that unresolved jurisdictional overlap is driving uncertainty in the market.

Adebayo said the association had earlier flagged the issue to the NCC, noting that conflicting regulations risk undermining both legal clarity and commercial stability.

He stressed that the impact of the disruption is being felt most by ordinary Nigerians who rely on airtime credit as a financial lifeline.

“These are not abstract figures. Behind every naira in that market is a Nigerian who cannot go to a bank and get a loan. Airtime credit is how they bridge the gap.“When the service goes dark, they feel it immediately,” Adebayo said.

He added that the market, estimated to be worth between ₦300 billion and ₦400 billion annually, plays a critical role for traders, artisans and small-scale entrepreneurs who depend on short-term credit for daily transactions.

On investor sentiment, Adebayo warned that uncertainty in regulatory coordination could discourage long-term investment in Nigeria’s digital economy.

“Investors take their cues from how disputes are managed, not just how they begin. A market where regulatory jurisdiction is unclear and where resolving that uncertainty causes disruption will struggle to attract the kind of long-term investment Nigeria needs,” he said.

ALTON called on both the FCCPC and NCC to urgently coordinate and clarify their roles, urging that any resolution must align with existing court orders.

The association also expressed readiness to engage with regulators and the Federal Government to restore stability in the market.

The development comes amid confusion over the status of airtime and data credit services after the FCCPC dismissed claims that it had banned the services, describing such reports as false and misleading.

Despite the clarification, major telecom operators, including MTN Nigeria and Airtel Nigeria, temporarily suspended airtime and data borrowing services.

The disruption has affected millions of subscribers who rely on the services for emergency communication, particularly through the widely used *303# short code.

The FCCPC had reportedly directed operators to comply with its Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025, requiring engagement only with approved service providers.

Subscribers have since expressed frustration, describing the suspension as disruptive to daily communication needs and economic activities.

Federal High Court sitting in Abuja has struck out a high-profile lawsuit that sought to nullify the 50 percent telecommunications tariff hike approved  by the Nigerian Communications Commission (NCC) on January 1, 2025 .

The ruling, delivered by Justice M.G. Umar, effectively shuts down a case that had threatened to force telecom operators including MTN Nigeria to reimburse subscribers with interest and pay N100 million in general damages.

The Court held that it lacked jurisdiction to entertain the suit due to a fundamental flaw on the part of the applicant.

The suit marked FHC/ABJ/CS/643/2025 – Barr. Obioma Ezenwobodo v. Nigerian Communications Commission & MTN Nigeria Communications Plc was originally filed on October 21, 2025, by the applicant.

In his Application for Judicial Review, Ezenwobodo, through Joseph Onu Silas, his counsel, sought three major reliefs against both the NCC (the industry regulator) and MTN Nigeria (the 2nd Respondent) – an order prohibiting and setting aside the NCC’s rule and regulation approving the 50 percent telecommunication tariff adjustment (popularly referred to as the tariff hike) issued on Monday, January 20, 2025; an order mandating the NCC and MTN Nigeria, their servants, agents, licensees, and staff to reimburse, return, and pay back with interest all deductions, tariffs, and charges made as a result of the said 50 percent tariff hike.

He also sought an order of N100 million as general damages against the respondents, citing untold hardship, economic deprivation, psychological distress, and pain suffered by the applicant due to the alleged illegal and arbitrary charges.

Counsel to MTN Nigeria Communications Plc, Ituah Imhanze and Divine Oguru of Kenna LP on November 24, 2025, opposed the applicant’s originating motion, and challenged the jurisdiction of the Federal High Court to hear the suit. In that motion, MTN urged the Court to dismiss or strike out the suit entirely in limine (at the outset).

The jurisdictional challenge was argued on January 26, 2026, with Divine Oguru Esq., Senior Counsel from Kenna LP, appearing for MTN Nigeria.

The applicant and the NCC were also represented by their respective counsel.

Delivering a well considered judgment, Justice M.G. Umar upheld the core arguments advanced by MTN Nigeria’s legal team.

The Court ruled decisively on the issue of locus standi – the legal right of the applicant to bring the case before the Court. Justice Umar found that Barrister Obioma Ezenwobodo had failed to demonstrate any special interest in the subject matter of the suit beyond that of the general public.

The Court noted that the 50 percent tariff hike applied to all telecom consumers, not uniquely or disproportionately to the applicant.

As such, the applicant’s grievance was a general grievance, not one showing a specific, personal, or greater injury than that suffered by any other Nigerian telecom subscriber.

Because the applicant lacked the requisite locus standi, the Court held that it had no jurisdiction to entertain the suit. Consequently, the matter was struck out.

On the issue of legal costs, the Court directed that parties bear their respective costs, meaning no award of damages or reimbursement was granted against MTN Nigeria or the NCC.

The ruling is a significant legal endorsement of NCC’s regulatory authority to approve tariff adjustments and confirms that MTN Nigeria and other operators in the telecommunications sector may continue to implement the 50 percent tariff hike without legal hindrance from challengers lacking direct personal standing.

Industry observers note that the judgment sets an important precedent: future challenges to industry-wide pricing policies must be brought by parties who can show a concrete, particularised injury distinct from that of the general consuming public.

House of Representatives has asked the Nigerian Communications Commission (NCC) to extend the validity period for inactive phone numbers before they are reassigned to new users to 18 months.

Recall that SIM card security concerns, prompted the NCC  launched the Telecoms Identity Risk Management System (TIRMS)  late March 2026 to curb fraud linked to SIM recycling.

This portal will allow regulators and banks to track reassigned numbers.

NCC regulations require 360 days of inactivity before a SIM can be recycled.

But the House of Representatives, said the proposed extension from the current timeline would enhance compliance with the Nigeria Data Protection Act, 2023.

The House resolution followed the adoption of a motion sponsored by the member representing Orhionmwon/Uhunmwode Federal Constituency of Edo State, Billy Osawaru.

Leading the debate on the motion, Mr Osawaru warned that the current practice of recycling dormant SIM cards without sufficient public notification exposes unsuspecting Nigerians to embarrassment, extortion and even wrongful criminal suspicion.

He said some reassigned numbers often remain tied to sensitive personal records, including bank verification numbers and national identity data, creating opportunities for misuse by new subscribers or criminal actors.

Adopting the motion, the House called on the NCC to ensure inactive SIM cards earmarked for reallocation are published in national newspapers during a six-month notice period and that details of such numbers be shared with security agencies to improve transparency and aid crime prevention.

The house noted that the move would help reduce risks associated with recycled phone numbers while improving accountability in the telecommunications sector.

Following adoption of the motion, the House mandated its Committees on Communications and Commerce to engage the NCC, the Nigeria Data Protection Commission (NDPC) and other stakeholders and report back within four weeks for further legislative action.