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.