No fewer than 40 million Nigerians who place their reliance on airtime borrowing services may be confronted by another round of disruptions if the Federal Competition and Consumer Protection Commission (FCCPC) begins complete enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 before the determination of a pending appeal.
The above warning is contained in an affidavit sworn to by the Chairman of WASPAN, Ayo Stuffman, in support of the association’s application for an injunction pending appeal following the July 20 judgment of the Federal High Court sitting at Ikoyi, Lagos, which upheld the FCCPC’s authority to issue and enforce the DEON regulations.
The suit, designated FHC/L/CS/760/2026, seeks to determine whether the FCCPC has the statutory authority to regulate telecommunications-based airtime lending services or whether such regulatory powers belong exclusively to the Nigerian Communications Commission (NCC) under the Nigerian Communications Act, 2003.
Consequent to the judgment handed down by the Federal High Court, WASPAN initiated a Notice of Appeal on July 21, praying to the court to restrain the FCCPC from implementing the regulations until the Appellate Court determines the substantive issues.
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The association, according to Stuffman, became alarmed after the FCCPC announced immediately after the judgment that enforcement of the DEON Regulations had resumed, declaring that the legal impediment responsible for the earlier suspension of implementation had been removed and that the regulations were now fully operational and enforceable.
Stuffman posited that enforcing the regulations before the appeal is heard could expose operators to regulatory sanctions, create uncertainty within the telecommunications industry and disrupt airtime borrowing services relied upon by millions of Nigerians.
Stuffman, in the affidavit, declared that “I know for a fact that unless restrained by the orders of this Honourable Court, the Defendant will proceed to enforce the said regulations against members of the Plaintiff.”
He equally contended that FCCPC’s actions would continue to subject WASPAN members to regulatory uncertainty, expose them to sanctions and interfere with their lawful business operations while the appeal remains pending.
WASPAN insisted that its members are already being constrained in exercising their operational responsibilities under the NCC, which it described as their primary regulator, through additional regulatory obligations imposed by the FCCPC, including partnership approvals and service agreement requirements.
Stuffman equally argued that allowing the regulations to be enforced before the appeal is determined would render the appellate proceedings ineffective by creating a fait accompli before the Court of Appeal has an opportunity to rule on the legality of the regulations.
In the affidavit, a Senior Advocate of Nigeria, SAN, Chukwudi Enebeli, who represented WASPAN, opined that the appeal raises substantial and arguable legal questions regarding the scope of the FCCPC’s regulatory authority over telecommunications services.
The legal opinion attached to the application further stated that there is a real likelihood that enforcement of the regulations could disrupt the operations of WASPAN members while the appeal is awaiting determination.
The association maintained that refusing its request for an injunction would undermine the purpose of the appeal and expose operators to irreversible consequences before the appellate court delivers its judgment.
It would be recalled that in the proceedings earlier, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) had argued that airtime credit is not a traditional financial product but an essential telecommunications service that enables millions of Nigerians to remain connected, especially during emergencies.
In fact, the regulatory disagreement had previously resulted in the temporary suspension of airtime borrowing services by major mobile network operators before the Federal High Court granted interim relief allowing the services to resume pending the determination of the substantive suit.
The FCCPC, through its Director of Corporate Affairs, Ondaje Ijagwu, revealed that the FCCPC remains committed to the rule of law and would continue to discharge its statutory responsibilities in line with the court’s judgment.
According to him, the Commission had always maintained that the rule of law is fundamental to effective regulation and good governance, adding that following the court’s affirmation of the DEON Regulations, the FCCPC would continue to implement its statutory mandate professionally and in accordance with the law.