FCCPC Boss Faces Contempt Battle Over Airtime, Data Lending Crackdown
by Pascal Oparada, https://www.facebook.com/legitngnews · Legit.ng News · Join- FCCPC faces contempt proceedings for allegedly violating the court order on digital lending regulations
- MTN Nigeria suspends airtime lending service due to compliance concerns over FCCPC's regulations
- Legal battle may redefine consumer protection and telecom regulation boundaries in Nigeria
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The legal battle over Nigeria’s airtime and data lending services has intensified after a Federal High Court in Lagos initiated contempt proceedings against the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Mr Tunji Bello.
The court action follows allegations that the FCCPC violated an earlier order restraining it from enforcing controversial digital lending regulations targeting telecom-based credit services.
Court summons FCCPC chairman
Court documents in Suit No: FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against the FCCPC, revealed that Justice Ambrose Lewis-Allagoa issued a Form 49 notice directing Bello to appear before the court on May 22, 2026.
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The notice, titled “Notice to Show Cause Why Order of Committal Should Not Be Made,” warned that Bello could face imprisonment if found guilty of contempt for allegedly disobeying the court’s April 15 restraining order.
The proceedings were directed personally at Bello at the FCCPC headquarters in Abuja, signalling a serious escalation in the dispute between telecom service providers and the consumer protection agency.
Dispute over airtime, data credit rules
The controversy stems from the FCCPC’s Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations 2025, introduced to regulate Nigeria’s fast-growing digital credit industry, including airtime and data lending services.
The rules imposed stricter compliance requirements on operators, covering loan disclosures, debt recovery methods, and consumer data protection.
FCCPC defended the framework as necessary to tackle widespread abuses in the digital lending market, citing thousands of consumer complaints linked to loan apps and credit platforms.
However, telecom operators and service providers argued that parts of the regulations crossed into areas reserved for the Nigerian Communications Commission (NCC).
Telecom operators push back
The disagreement quickly disrupted telecom services. MTN Nigeria suspended its Xtratime airtime lending service after raising concerns over compliance obligations tied to the regulations.
WASPA subsequently approached the Federal High Court, arguing that the FCCPC lacked the legal authority to regulate the technical structure and activation systems of telecom-based lending products.
At the centre of the dispute is Regulation 24 of the DEON framework, which critics say interferes directly with telecommunications operations rather than consumer protection.
Justice Lewis-Allagoa had earlier granted an interim injunction restraining the FCCPC from enforcing the regulations or penalising WASPA members pending the determination of the case.
Major regulatory test for Nigeria
Despite the order, WASPA alleged that the FCCPC continued actions linked to enforcement of the regulations, prompting the contempt proceedings now facing Bello.
Legal analysts say the case could redefine the boundaries between consumer protection oversight and telecom regulation in Nigeria.
The outcome is also expected to shape the future of airtime and data credit services relied upon daily by millions of Nigerians for communication and emergency access.
Court rejects FCCPC’s move to halt telcos' airtime lending
Legit.ng earlier reported that the Federal High Court in Lagos has refused a fresh application by the Federal Competition and Consumer Protection Commission (FCCPC) seeking to lift an interim injunction stopping it from enforcing parts of its controversial Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025 against members of the Wireless Application Service Providers Association of Nigeria (WASPAN).
The decision is seen as a major relief for mobile service providers offering airtime lending, data advances, and other digital consumer credit services across Nigeria.
Justice A. Lewis-Allagoa, presiding over Suit No: FHC/L/CS/760/2026, had earlier granted an interim injunction on April 15 following an ex parte motion filed by WASPAN on April 14.