Court begins contempt proceedings against FCCPC over alleged breach of digital lending order

At earlier proceedings in the matter, the court also issued a Form 45 notice warning the FCCPC’s Executive Vice Chairman, Tunji Bello, that failure to comply with the order could lead to contempt proceedings, including possible imprisonment.

The Federal High Court in Lagos on Tuesday commenced committal proceedings against the Federal Competition and Consumer Protection Commission (FCCPC) over alleged disobedience of a subsisting court order restraining the enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025.

The judge, Ambrose-Lewis Allagoa, adjourned the matter until 22 May for continuation after hearing arguments from lawyers representing the Wireless Application Service Providers Association of Nigeria (WASPAN) and the FCCPC.

The dispute centres on the legality of the FCCPC’s regulatory framework for digital lending services, including airtime advances and other telecom-based credit products.

PREMIUM TIMES had reported that the court issued in April an interim order restraining the commission from enforcing key provisions of the regulations, following an ex parte application filed by WASPAN to challenge the validity of the framework.

The court subsequently issued a Form 45 notice warning the FCCPC’s Executive Vice Chairman, Tunji Bello, that failure to comply with the order could lead to contempt proceedings, which could possibly end in imprisonment.

The regulations, introduced in 2025, were designed to curb predatory lending practices in Nigeria’s fast-growing digital credit sector. They required digital lenders to obtain licences, disclose loan terms clearly, comply with data protection standards, and adopt ethical debt recovery practices.

But WASPAN challenged parts of the framework, arguing that the FCCPC exceeded its statutory powers and encroached on the regulatory remit of the Nigerian Communications Commission (NCC), particularly in relation to telecom-based lending services.

The association also told the court that some of its members had already been affected by enforcement actions, including directives to provide compliance assurances and suspend certain operations, alongside threats of sanctions for non-compliance.

Interim order

After hearing submissions from WASPAN’s lawyer, Kemi Pinheiro, a Senior Advocate of Nigeria (SAN), the court granted an interim injunction restraining the FCCPC from enforcing or implementing the disputed provisions of the regulations.

The order specifically covered several provisions of the framework and barred the commission from imposing sanctions, fines, or other penalties on members of WASPAN pending the determination of the substantive suit.

Mr Allagoa held that maintaining the injunction was necessary to preserve the status quo and prevent actions that could render the case nugatory.

Allegation of disobedience

At Tuesday’s proceedings, Mr Pinheiro told the court that despite the restraining order, the FCCPC had continued actions linked to enforcement of the suspended regulations.

He argued that the alleged conduct amounted to disobedience of a valid court order and urged the court to first address the issue of contempt before proceeding with other pending applications.

He also informed the court that the alleged breach had been drawn to the attention of the FCCPC’s legal team, but the commission maintained its position in a letter dated 5 May, insisting that actions taken by telecom operators were independent business decisions.

FCCPC’s response

Opposing the application, FCCPC lawyer, Funke Aboyade, also a SAN, argued that the court should first determine the commission’s preliminary objection and the substantive originating summons already before it.

She submitted that committal proceedings at this stage would be premature, given that jurisdictional issues were still pending.

But Mr Allagoa held that allegations of contempt must be addressed first, stressing that court orders remain binding unless set aside by a competent court.

He noted that the authority of the judiciary must be preserved, adding that no party is at liberty to disregard a subsisting order.

The court also recalled that it had earlier issued a Form 45 notice of consequences of disobedience against FCCPC, warning of possible contempt proceedings.

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Background

The case stems from the FCCPC’s introduction of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations in September 2025.

The commission says the framework was introduced in response to consumer complaints about predatory lending, harassment, data misuse, and unfair debt recovery practices in the digital credit space.

It insists the regulations were issued under Sections 17, 18 and 163 of the FCCPA 2018 to strengthen consumer protection and ensure transparency in lending operations.

However, operators argue that overly strict regulation could disrupt innovation and financial inclusion in Nigeria’s expanding digital lending market.

The outcome of the case is expected to shape how digital lending and telecom-based credit services are regulated in Nigeria going forward.