Court rules FCCPC can regulate but cannot license airtime providers

The Federal High Court in Lagos on Monday established a clear distinction regarding the regulatory powers of the Federal Competition and Consumer Protection Commission (FCCPC) within the airtime and data credit sector. The court ruled that while the Commission holds the authority to oversee market conduct, it lacks the power to issue operating licences.

In his judgment for Suit No. FHC/L/CS/760/2026, Justice Ambrose Lewis-Allagoa stated that sections 104, 105, 106, and 163 of the Federal Competition and Consumer Protection Act 2018 authorise the FCCPC to investigate anti-competitive behaviour, protect consumers, and issue relevant regulations. However, the court clarified that the FCCPC is not empowered to grant licences, noting that the DEON Consumer Lending Regulations 2025 do not create a telecommunications licensing regime. Consequently, the Nigerian Communications Commission (NCC) remains the sole authority for licensing telecommunications entities.

Impact on recent regulatory approvals

This ruling carries immediate practical implications. In April 2026, the FCCPC authorised five companies—Total Tim Nigeria Limited, Rane Interactive Medien CLS Limited, Mode NG Applications Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited—to operate as airtime and data credit providers under the DEON framework. The court’s decision now casts doubt on the regulatory legitimacy of these approvals.

The court dismissed the FCCPC’s preliminary objection regarding the standing of the Wireless Applications Service Providers Association of Nigeria (WASPAN) to initiate the lawsuit. It found that the association had provided valid pre-action notice and that the dispute involved the interpretation of legislation rather than a claim for damages. Furthermore, the court rejected WASPAN’s challenge to the DEON Regulations, affirming that they align with the FCCPC’s statutory mandate and do not conflict with the Nigerian Communications Act 2003.

Complementary regulatory roles

The court characterised the relationship between the two regulators as complementary. The FCCPC holds jurisdiction over competition and consumer protection matters, while the NCC retains exclusive control over technical, licensing, and prudential responsibilities.

This judgment provides the first judicial clarity on the oversight of airtime and data credit services, a market valued at between N300 billion and N400 billion annually, which serves approximately 40 million Nigerians daily. Under this ruling, the FCCPC is restricted to setting standards for service delivery and addressing anti-competitive practices, while licensing authority remains exclusively with the NCC.