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Court orders MTN, Airtel to resume ExtraTime service, data credit

Millions of telecom subscribers in Nigeria may soon regain access to airtime and data credit services after two rulings by the Federal High Court weakened the legal grounds behind their sudden suspension earlier in April s reported by SaharaReporters.

Services such as MTN Nigeria’s XtraTime and Airtel Networks Limited’s data credit options were halted in mid-April.

The disruption followed compliance concerns linked to new digital lending rules introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

The suspension left millions of prepaid users without access to emergency airtime borrowing, a service widely relied upon by traders, low-income earners, and small business owners.

In a key development, a Lagos division of the Federal High Court, led by Justice A. Lewis-Allagoa, issued an interim injunction on April 15.

The order restrained the FCCPC from enforcing key parts of its 2025 lending regulations against members of the Wireless Application Service Providers Association of Nigeria.

The court also barred the commission from imposing sanctions or issuing directives that could disrupt telecom service providers operating within the existing framework.

Shortly after, another ruling from the Abuja division of the Federal High Court further strengthened the position of service providers.

The court, in a case involving Nairtime Holdings Limited and Nairtime Nigeria Limited, directed telecom operators not to restrict access to essential infrastructure.

This includes short codes, USSD channels, SMS systems, and billing platforms, which are vital for delivering airtime and data credit services.

The court also ruled that operators must respect contractual notice periods and dispute resolution processes, even when responding to new regulatory directives.

Together, the rulings have cast doubt on the justification used by telecom companies to suspend these services, increasing expectations that they may resume soon.

At the heart of the issue is a regulatory dispute. The FCCPC had expanded its oversight in July 2025 to include digital lending, placing airtime and data credit under a licensing system designed to address exploitative loan practices.

However, industry groups like Wireless Application Service Providers Association of Nigeria argue that such services fall under the authority of the Nigerian Communications Commission, since they operate through telecom infrastructure governed by existing communications laws.

Amid the uncertainty and risk of penalties, telecom operators chose to suspend the services, a move that sparked widespread criticism.

While the FCCPC denied ordering the shutdown and described it as a business decision, stakeholders have accused the commission of overstepping its regulatory boundaries.

WASPAN has since called on the FCCPC to comply with the court rulings, refrain from public statements that could affect ongoing cases, and engage in discussions with the NCC and other stakeholders.

Industry estimates suggest airtime lending in Nigeria is valued between N500 billion and N1.2 trillion annually, highlighting its importance as an informal credit system supporting everyday economic activities.

Although both cases have been adjourned for further hearings, attention is now on telecom operators and how quickly they will restore services that millions of Nigerians have been without for nearly two weeks.