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  • Airtime Credit May Return as Court Orders Shake FCCPC Rules, Pressure Mounts on MTN, Airtel

     

    Millions of Nigerian telecom subscribers may soon regain access to airtime and data credit services after two Federal High Court rulings challenged the regulatory basis behind their suspension earlier in April. The development follows weeks of disruption that left prepaid users without access to emergency borrowing options widely relied on across the country.

    Subscribers Stranded as MTN, Airtel Suspend Credit Services

    The services, including MTN Nigeria’s XtraTime and Airtel’s data credit options, were suspended following compliance concerns linked to new digital lending regulations issued by the Federal Competition and Consumer Protection Commission (FCCPC). The sudden halt affected millions of users, especially low-income earners, traders, and small business operators who depend on the services for daily connectivity.

    The disruption triggered widespread frustration as users were cut off from short-term credit facilities often used to manage urgent communication and business needs. Telecom operators had attributed the suspension to regulatory uncertainty surrounding the new framework.

    Lagos Court Restrains FCCPC From Enforcing Regulations

    On April 15, the Federal High Court in Lagos, presided over by Justice A. Lewis-Allagoa, granted an interim injunction restraining the FCCPC from enforcing key provisions of its 2025 Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations against members of the Wireless Application Service Providers Association of Nigeria (WASPAN).

    The court also barred the commission from imposing sanctions or issuing further directives that could disrupt operations within the existing telecom structure. The ruling is seen as a major setback to the regulatory reach of the FCCPC in the ongoing dispute.

    Abuja Court Blocks Suspension of Telecom Infrastructure Access

    In a separate ruling in Abuja, the Federal High Court restrained MTN Nigeria and Airtel Networks Limited from suspending or limiting access to telecom infrastructure for Nairtime Holdings Limited and Nairtime Nigeria Limited. The order specifically covered USSD channels, short codes, SMS platforms, and billing systems tied to airtime credit services.

    The court further stated that telecom operators must respect contractual notice periods and dispute resolution mechanisms before acting on regulatory changes. This effectively questioned the legality of the abrupt suspension carried out by operators in April.

    Regulatory Clash Between FCCPC and NCC Deepens

    At the centre of the dispute is a jurisdictional conflict between regulatory bodies over who controls digital lending services delivered through telecom platforms. The FCCPC had expanded its oversight in July 2025 to cover airtime and data credit services under its digital lending framework.

    However, industry stakeholders insist the services fall under the Nigerian Communications Commission (NCC), citing the Nigerian Communications Act of 2003. They argue that telecom-based credit products should remain within NCC’s regulatory domain rather than consumer protection oversight.

    Industry Pushback and Economic Concerns

    Following the regulatory uncertainty, MTN and Airtel suspended the services pending clarification, a move that triggered backlash from stakeholders and consumers. WASPAN has accused the FCCPC of regulatory overreach, while urging full compliance with court orders and renewed collaboration with the NCC.

    Analysts estimate that airtime lending transactions in Nigeria are valued between ₦500 billion and ₦1.2 trillion annually, highlighting their importance as an informal credit lifeline for millions of Nigerians. The suspension, they note, temporarily disrupted a key financial support system within the telecom ecosystem.

    Restoration Expectations Build as Legal Battle Continues

    Although both cases have been adjourned for further hearings, attention has now shifted to telecom operators and how quickly services may be restored. The court rulings have significantly weakened the justification previously used for the suspension, raising expectations of an imminent return of airtime and data credit services.

    As the legal and regulatory battle continues, stakeholders warn that prolonged uncertainty could further affect consumer access and digital financial inclusion in Nigeria’s telecom sector.

     

  • FCCPC Denies Banning Airtime Borrowing, Blames Telecom Operators For Disruptions

    The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed claims that it banned airtime borrowing and data advance services in Nigeria, describing the reports as false and misleading.

    FCCPC clears the air

    In a statement, the Commission said it never issued any directive stopping Nigerians from accessing airtime or data advance services.

    “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,” it stated.

    The clarification comes amid widespread concerns following reports of service disruptions across telecom networks.

    Why FCCPC stepped in

    The Commission explained that its intervention was driven by growing complaints from consumers.

    These include issues such as hidden charges, unexplained deductions, aggressive recovery tactics, poor transparency, and weak accountability among service providers.

    To address this, FCCPC introduced the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations in July 2025.

    The framework is aimed at improving transparency, ensuring proper registration, and protecting consumers from exploitative practices.

    Operators blamed for disruptions

    FCCPC noted that telecom operators were given a 90-day window to comply with the new regulations, which was later extended to January 5, 2026.

    However, it said some operators failed to meet the requirements and continued operating outside the regulatory framework.

    According to the Commission, any temporary suspension or disruption of services should be seen as a compliance decision by the companies, not a government 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,” it said.

    Allegations of misinformation

    The Commission also alleged that misinformation around the issue may be driven by vested interests opposed to stricter regulation and fair competition.

    It described attempts to blame the regulator as misleading, insisting that operators had enough time to comply with the rules.

    FCCPC urged Nigerians to ignore false narratives and rely on verified information regarding telecom services.

  • Airtel Nigeria Suspends Airtime and Data Credit Services, Cites Regulatory Compliance as MTN Follows Similar Move

    Airtel Nigeria has announced the temporary suspension of its airtime and data credit service, a facility that previously allowed eligible prepaid customers to borrow airtime and data and repay on their next recharge, as regulatory pressure tightens across the telecom sector.

    Airtel halts credit service

    The company said the decision is part of ongoing operational adjustments aimed at aligning with evolving regulatory requirements in Nigeria’s telecommunications industry.

    In a statement on Friday, Director of Corporate Communications and CSR, Femi Adeniran, explained that the move was necessary to ensure full compliance with current industry expectations.

    He added that the suspension reflects broader efforts to meet operational and regulatory standards guiding telecom services in the country.

    Core services remain unaffected

    Despite the suspension, Airtel assured customers that its main services remain fully operational.

    Subscribers, according to the company, will continue to enjoy uninterrupted access to airtime and data purchases through existing recharge channels.

    The firm also stressed that the temporary pause will not affect network performance or overall service delivery nationwide.

    “Responsible step” — Airtel explains decision

    Director of Marketing, Ismail Adeshina, described the suspension as a necessary and responsible move in line with compliance obligations.

    “This is a necessary and responsible step as we align our operations with evolving requirements. Airtel Nigeria remains committed to the highest standards of compliance, transparency, and consumer protection, while continuing to innovate responsibly within Nigeria’s digital ecosystem,” he said.

    The company added that further updates on the suspended service will be communicated in due course.

    MTN takes similar action

    The development comes just hours after rival telecom operator MTN Nigeria also suspended its Xtratime service, which allows subscribers to borrow airtime and data.

    The back-to-back decisions point to increasing regulatory scrutiny of credit-based telecom services in Nigeria’s digital space.