Association seeks clarity on DEON rules as regulatory debate enters new phase

The legal contest over the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations has entered a new phase, with the Wireless Application Service Providers Association of Nigeria (WASPAN) asking the Federal High Court in Lagos to suspend enforcement of the regulations pending the determination of its appeal.

The fresh application is expected to prolong uncertainty over the regulatory framework governing Nigeria’s digital consumer lending and airtime credit ecosystem, a market that has witnessed months of disputes over the scope of the FCCPC’s powers relative to those of the Nigerian Communications Commission (NCC).

WASPAN’s latest move follows the July 20 judgment of the Federal High Court, which upheld the validity of the DEON Regulations while clarifying that the FCCPC’s powers relate to competition and consumer protection, with the NCC retaining exclusive authority to license telecommunications operators.

Justice Ambrose Lewis-Allagoa had dismissed the FCCPC’s preliminary objection, holding that WASPAN’s suit disclosed a reasonable cause of action and that the association had served the required pre-action notice on the commission.

The court further held that the association acted under a genuine apprehension and that, because the dispute concerned the interpretation of legislation rather than a claim for damages, any alleged non-compliance with the statutory pre-action notice requirement did not deprive the court of jurisdiction.

On the substantive issues, however, the court ruled that Sections 104, 105, 106 and 163 of the Federal Competition and Consumer Protection Act empower the FCCPC to investigate anti-competitive conduct, protect consumers and make regulations.

The court also held that there was no conflict between the Federal Competition and Consumer Protection Act and the Nigerian Communications Act, affirming that while the FCCPC exercises competition and consumer protection functions, the NCC remains the statutory regulator responsible for issuing telecommunications licences.

Justice Allagoa further held that the FCCPC lacks the power to issue telecommunications licences, stating that “nothing in the DEON Regulations creates a telecommunication licensing.”

Although the court dismissed WASPAN’s claim that the DEON Regulations were ultra vires, the FCCPC’s powers, the association has appealed the judgment and is seeking interim orders to preserve the status quo pending the determination of the appeal.

In a Motion on Notice, WASPAN asked the court to restrain the FCCPC from “enforcing, implementing and/or otherwise giving effect to the enforcement and/or implementation of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025” until the appeal is heard and determined.

The association also requested orders restraining the commission from interfering with services provided by its members under the regulations and from imposing sanctions, penalties or fines for alleged non-compliance while the appeal is pending.

According to WASPAN, the interim reliefs are necessary to preserve the subject matter of the appeal and prevent actions that could render the appellate proceedings nugatory.

The appeal extends a regulatory dispute that has become significant for telecommunications operators, wireless application service providers and digital lending businesses, as stakeholders continue to seek judicial clarity on the limits of the FCCPC’s regulatory authority and the interface between competition law and sector-specific telecommunications regulation.