Wale Igbintade The Federal High Court in Lagos on Monday delivered a landmark judgment affirming the powers of the Federal Competition and Consumer Protection Commission (FCCPC) to regulate Nigeria’s digital consumer lending market, including airtime and data lending services, in a decision expected to reshape oversight of the country’s estimated N400 billion airtime credit industry. Justice Ambrose Lewis-Allagoa dismissed in its entirety a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), holding that the FCCPC acted within its statutory and constitutional powers in issuing the Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations. The judgment removes the legal obstacle that had temporarily restrained the Commission from enforcing the regulations against operators in the digital lending ecosystem, including providers of Airtime Credit Services (ACS). Delivering judgment in Suit No. FHC/L/CS/760/2026, Justice Lewis-Allagoa held that the challenged provisions of the DEON Regulations are intra vires the FCCPC and constitutionally valid when interpreted as measures aimed at consumer protection and the regulation of anti-competitive conduct. The judge held that the FCCPC’s regulatory jurisdiction is constitutional in origin, deriving from Sections 16(2)(c), 16(3) and 17(2)(d) of the 1999 Constitution (as amended), as well as Item 60(a) of the Exclusive Legislative List, giving the Commission economy-wide powers over competition and consumer protection matters. He further ruled that Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA), 2018 confer precedence on the FCCPC in competition and consumer protection issues, while sector regulators retain their technical, licensing and prudential responsibilities. According to the court, the relationship between the FCCPC and sector regulators is complementary rather than conflicting. “Concurrency means coexistence, not displacement,” Justice Lewis-Allagoa held, adding that the DEON Regulations do not usurp the statutory powers of the Nigerian Communications Commission (NCC). The court found that the regulations, read as consumer protection and competition measures—and not as a licensing regime for communications services—fall squarely within the powers conferred on the FCCPC under Section 163 of the FCCPA, read together with Sections 1, 2, 17 and 18 of the Act. Justice Lewis-Allagoa also rejected the contention that the DEON Regulations conflict with the Nigerian Communications Act, 2003, holding that both statutes can be harmoniously construed. He added that where competition and consumer protection issues arise, the FCCPA provides the applicable legal framework, subject to the Constitution. Although the court dismissed the FCCPC’s preliminary objection challenging its jurisdiction, it proceeded to determine the substantive issues in favour of the Commission. The judge declined all the declarations sought by WASPAN, refused all the reliefs contained in the Originating Summons and dismissed the suit in its entirety. The court also discharged the four interim injunctions granted ex parte on April 15, 2026, restraining the enforcement of the DEON Regulations, holding that the basis for the orders had disappeared following the dismissal of the substantive suit. Justice Lewis-Allagoa observed that a statutory regulator should not ordinarily be restrained from discharging lawful statutory functions. Granting the FCCPC’s cross-reliefs, the court affirmed that the Commission is empowered under Section 163 of the FCCPA to regulate conduct in the digital, electronic, online and non-traditional consumer lending market, including the prevention of anti-competitive practices and the protection of consumers. The court further affirmed the FCCPC’s statutory precedence in competition and consumer protection matters while clarifying that such authority operates alongside—not in place of—the NCC’s regulatory powers under the Nigerian Communications Act. Recognising the public importance of the issues raised, the judge made no order as to costs. The suit stemmed from the FCCPC’s introduction of the DEON Regulations, a framework designed to strengthen oversight of Nigeria’s digital lending industry following widespread concerns over the activities of some online lenders. The Commission subsequently extended the framework to Airtime Credit Services, under which subscribers receive airtime or data in advance and repay later with an associated service charge. Represented by Senior Advocate of Nigeria Kemi Pinheiro, WASPAN argued that airtime lending is a telecommunications value-added service regulated exclusively by the NCC under the Nigerian Communications Act.
Don't miss out on breaking stories and in-depth articles.
