Airtel and Globacom Restore Airtime Lending Services After FCCPC Suspends Enforcement of Lending Rules
Millions of Nigerian telecom subscribers can once again access airtime lending services after Airtel and Globacom restored the offerings following the Federal Competition and Consumer Protection Commission's (FCCPC) decision to suspend enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025.
The
suspension follows an interim order issued by the Federal High Court in Lagos,
which temporarily halted implementation of the regulations pending further
legal proceedings.
The
development brings relief to subscribers who rely on airtime advances for
communication during emergencies and periods of temporary cash shortages.
Court
Order Forces Regulatory Pause
The FCCPC
announced on 22 May that it would suspend enforcement of the regulations after
a ruling by Justice A.L. Allagoa of the Federal High Court.
The court
order was granted following a lawsuit filed by the Wireless Application Service
Providers Association of Nigeria (WASPAN), which challenged the commission's
decision to classify telecom airtime credit services under digital lending
regulations.
The FCCPC has indicated that it intends to challenge the ruling, but enforcement remains suspended for now.
Why the
Regulations Sparked Controversy
The dispute
began when the FCCPC expanded the scope of its digital lending framework to
include airtime credit and deferred-payment data services.
Under the
regulations, telecom operators offering such services would be treated as
digital lenders and required to comply with registration, disclosure, and
consumer protection requirements designed primarily for loan providers.
Industry
stakeholders argued that airtime credit functions as a telecommunications
value-added service rather than a conventional loan product.
WASPAN
maintained that the services are already regulated under the Nigerian
Communications Commission (NCC) framework and should not be subjected to
overlapping regulatory requirements.
Millions
of Subscribers Affected
The
regulatory uncertainty prompted major operators, including MTN, Airtel, and
Globacom, to suspend airtime lending services in April to avoid potential
penalties.
The
disruption affected a market that serves millions of Nigerians, particularly
low-income subscribers who depend on small airtime advances to stay connected
between recharges.
Services such
as Globacom's "Borrow Me Credit" disappeared from operator platforms
during the suspension period.
Industry
representatives have now confirmed that Airtel and Globacom have restored the
services, while expectations remain high that MTN could follow suit.
A Growing
Regulatory Debate
The DEON
Regulations were originally introduced to address abusive practices within
Nigeria's digital lending industry, including harassment, privacy violations,
and opaque lending terms.
However, the
broad definition of lending contained in the framework extended beyond loan
applications to include telecom credit services and other deferred-payment
products.
Operators
warned that applying lending regulations to telecom services could create
compliance burdens and operational disruptions without improving consumer
protection.
The NCC has
also maintained that airtime credit falls within telecommunications regulation
rather than consumer lending oversight.
What
Happens Next?
While
subscribers can once again access airtime advances, the broader regulatory
question remains unresolved.
The FCCPC
plans to challenge the court order, while industry stakeholders continue to
push for clearer boundaries between telecommunications and digital lending
regulation.
The outcome
could shape how emerging credit-based telecom services are regulated in
Nigeria's rapidly evolving digital economy.
