Court rejects FCCPC’s bid, upholds injunction halting airtime lending clampdown

The Federal High Court in Lagos has refused an application by the Federal Competition and Consumer Protection Commission (FCCPC) to set aside an interim injunction preventing it from enforcing controversial provisions of its 2025 consumer lending regulations against telecom-based service providers.

In a ruling delivered on Tuesday, Justice A. Lewis-Allagoa declined the commission’s request to discharge the subsisting restraining order, effectively maintaining the status quo pending the determination of the substantive suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN).

The dispute centers on the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025, introduced by the FCCPC to govern digital lending practices. WASPAN, representing mobile value-added service providers offering services such as airtime lending and data advances, had approached the court to challenge certain provisions of the regulations, arguing that they overstep the commission’s statutory authority.

Justice Lewis-Allagoa had earlier, on April 15, granted an interim injunction restraining the FCCPC, its officers, agents, and representatives from implementing or giving effect to the contested provisions. The order followed an ex parte motion filed by WASPAN on April 14, seeking urgent judicial intervention to halt enforcement actions that could disrupt their operations.

At the resumed hearing, which was initially scheduled to consider WASPAN’s motion on notice for an interlocutory injunction, the FCCPC urged the court to either proceed with the substantive matter immediately or vacate the interim order. The commission argued that the continued existence of the injunction hindered its mandate to regulate consumer lending and protect users from potentially exploitative practices.

However, WASPAN opposed the application, contending that the commission had only recently served its preliminary objection and that procedural fairness required that the claimant be given adequate time to respond. The association further argued that lifting the injunction at this stage would expose its members to regulatory actions based on rules whose legality remains unresolved.

After listening to submissions from both parties, Justice Lewis-Allagoa ruled that the FCCPC’s request lacked sufficient merit to warrant setting aside the earlier order. Instead, the court directed that the substantive suit and the commission’s preliminary objection be heard together to ensure a comprehensive determination of the legal issues involved.

The court subsequently adjourned the case to May 15, 2026, while affirming that the interim injunction remains in full force. This means the FCCPC is temporarily barred from enforcing the disputed aspects of the DEON Regulations against WASPAN members until the court reaches a final decision.

The ruling provides temporary relief to mobile service providers operating in Nigeria’s fast-growing digital lending space, preserving their ability to continue offering airtime credit, data advances, and related services without immediate regulatory interference.

WASPAN has maintained that while it supports consumer protection objectives, certain provisions of the FCCPC regulations allegedly conflict with the regulatory jurisdiction of the Nigerian Communications Commission and impose compliance obligations that may be inconsistent with existing telecom laws.

The case is expected to test the boundaries of regulatory authority in Nigeria’s evolving digital finance and telecommunications sectors, with significant implications for both consumer protection enforcement and the operations of service providers.