• Dismisses WASPAN’s suit, validates DEON regulations •Says FCCPC, NCC have complementary regulatory mandates •FCCPC resumes enforcement after vacation of restraining order James Emejo in Abuja, Dike Onwuamaeze and Wale Igbintade in Lagos The Federal High Court in Lagos has delivered a judgement 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 landmark ruling 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 Wireless Application Service Providers Association of Nigeria (WASPAN), and held that FCCPC acted within its statutory and constitutional powers in issuing the Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations. The judgement removed 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 judgement in Suit No. FHC/L/CS/760/2026, Lewis-Allagoa held that the challenged provisions of the DEON Regulations were intra vires FCCPC and constitutionally valid as measures designed to protect consumers and prevent anti-competitive conduct. Kemi Pinheiro, SAN, led WASPAN’s legal team, while Olufunke Aboyade, SAN, represented FCCPC. The court held that FCCPC’s regulatory jurisdiction derived 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, which conferred economy-wide authority over competition and consumer protection matters. Lewis-Allagoa further held that Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA), 2018, gave FCCPC precedence in competition and consumer protection issues, while sector regulators retained their technical, licensing, and prudential responsibilities. According to the court, the relationship between FCCPC and sector regulators is complementary rather than conflicting. “Concurrency means coexistence, not displacement,” the judge held, adding that DEON Regulations do not usurp the statutory powers of Nigerian Communications Commission (NCC). The court found that the regulations, when construed as consumer protection and competition measures rather than a licensing regime for communications services, fell squarely within FCCPC’s powers under Section 163 of FCCPA, read together with Sections 1, 2, 17 and 18 of the Act. Lewis-Allagoa also rejected WASPAN’s contention that the regulations conflicted with the Nigerian Communications Act, 2003, holding that both statutes can be harmoniously interpreted. He ruled that where competition and consumer protection issues arose, FCCPA provided the applicable legal framework, subject to the constitution. Although the court dismissed 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. He also discharged the four interim ex parte injunctions granted on April 15 restraining enforcement of the DEON Regulations, holding that the basis for the orders has ceased to exist following the dismissal of the substantive suit. Lewis-Allagoa observed that a statutory regulator should not ordinarily be restrained from performing its lawful statutory duties. Granting FCCPC’s cross-reliefs, the court affirmed that the commission was empowered under Section 163 of FCCPA to regulate conduct in the digital, electronic, online, and non-traditional consumer lending market, including preventing anti-competitive practices and protecting consumers. The court further clarified that FCCPC’s authority operated alongside—not in place of—NCC’s regulatory powers under the Nigerian Communications Act. Recognising the public importance of the issues, the court made no order as to costs. The suit arose from FCCPC’s introduction of DEON Regulations, a framework designed to strengthen oversight of Nigeria’s digital lending industry following widespread concerns over the conduct of some online lenders. The commission subsequently extended the framework to Airtime Credit Services, under which subscribers received airtime or data in advance and repaid later with an associated service charge. WASPAN argued that airtime lending was a telecommunications value-added service regulated exclusively by NCC under the Nigerian C
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