Federal Court Upholds FCCPC Digital Lending Powers
Court backs FCCPC consumer lending rules while raising concerns over telecom licensing requirements for airtime credit providers.
The Federal High Court has upheld the authority of the Federal Competition and Consumer Protection Commission (FCCPC) to regulate Nigeria’s digital lending sector.
Justice Lewis Alagoa delivered the ruling on 20 July 2026 in the case of WASPAN v. FCCPC (Suit No. FHC/L/CS/760/2026), confirming the validity of the FCCPC’s DEON Consumer Lending Regulations and removing four interim injunctions that had restricted the commission since April 2026.
The court ruled that the FCCPC digital lending regulations are supported by Sections 104 and 105 of the Federal Competition and Consumer Protection Act 2018. However, Justice Alagoa explained that the FCCPC’s role focuses on consumer protection and competition, while sector regulators retain their own responsibilities.
The judgment stated that the Nigerian Communications Commission (NCC) remains responsible for technical regulation, licensing, and oversight within the telecommunications industry. It also clarified that FCCPC approval under the DEON framework does not serve as a licence to provide communication services.
The ruling has created uncertainty for five companies approved by the FCCPC to offer airtime and data credit services. These firms include Total Tim Nigeria Limited, Rane Interactive Medien CLS Limited, Mode NG Applications Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited.
The FCCPC approved the companies after major telecom operators suspended similar services following enforcement of the DEON rules. However, the court noted that airtime credit relies on telecom systems such as USSD platforms, short codes, SMS gateways, and carrier billing, which fall under NCC regulation.
The decision means providers may need additional approval from the NCC before operating through telecom networks. The digital lending sector now awaits further guidance on whether the approved firms can continue without telecommunications licences.
The ruling requires the FCCPC and NCC to work within their legal boundaries while protecting consumers and supporting Nigeria’s digital economy.
Will further clarification from the NCC resolve uncertainty for digital lending providers?
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