Regulatory rift threatens Nigeria’s N400bn airtime credit lifeline – ALTON

A deepening regulatory rift between Nigeria’s two key agencies is threatening to paralyse the country’s massive N400 billion airtime credit market, putting millions of ordinary Nigerians at risk of losing a critical informal lifeline for daily commerce and survival, the Association of Licensed Telecoms Operators of Nigeria (ALTON) has stated.

Millions of Nigerian traders, artisans and small business owners woke up to a silent crisis this month: the sudden suspension of airtime and data credit services that have quietly functioned as the country’s largest informal credit system, worth an estimated N300 billion to N400 billion annually.

This is even as ALTON has issued a strong and urgent call for immediate resolution, warning that the ongoing suspension of airtime credit services, despite existing court orders, risks severe damage to consumer welfare, small businesses, and Nigeria’s investment climate.

Gbenga Adebayo, ALTON chairman described the situation as far more than a simple bureaucratic disagreement, stating, “What is happening in the airtime credit market is not simply a dispute between regulators. It is a test of whether the structures that underpin business confidence in this country are functioning as they should. Court orders have been issued, businesses hold valid licences, and consumers are still being affected. We believe all parties have a responsibility to bring this to an orderly resolution.”

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For millions of traders, artisans, small-scale entrepreneurs and low-income Nigerians, airtime credit has quietly become one of the most important forms of short-term financing available. Unable to access formal bank loans, they rely on quick airtime or data advances, often repaid automatically upon the next recharge, to buy goods, pay for transport, settle minor debts, or keep their daily businesses running.

Industry sources estimate the annual value of this market at between N300 billion and N400 billion. The sudden suspension has left many struggling to bridge cash-flow gaps in an economy where formal credit remains largely out of reach.

The crisis stems from a sharp jurisdictional clash between the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC).

While the NCC holds clear statutory oversight of the telecommunications sector under the Nigerian Communications Act, the FCCPC has introduced new regulations targeting digital and non-traditional lending practices.

ALTON maintains that licensed Value Added Service (VAS) providers operating airtime credit fall squarely under the NCC’s mandate.

The association had raised formal concerns with the NCC as early as August 2025, cautioning that the FCCPC’s rules appeared to conflict with an existing Memorandum of Understanding between the two agencies and would create dangerous uncertainty.

Interim injunctions issued by the Federal High Courts in Lagos and Abuja had restrained any interference in the operations of licensed VAS providers, including Nairtime Nigeria Limited and members of the Wireless Application Service Providers Association of Nigeria (WASPA).

Yet the suspension of services has continued, raising serious questions about coordination among regulatory bodies and respect for court directives.

Adebayo stressed that the stakes go well beyond the commercial interests of telecom operators. “These are not abstract figures. Behind every naira in that market is a Nigerian who cannot go to a bank and get a loan. Airtime credit is how they bridge the gap. When the service goes dark, they feel it immediately,” he said, referring to the N300 billion to N400 billion market size.

The prolonged disruption is also sending worrying signals to investors. Nigeria needs massive private capital to expand its digital infrastructure, improve broadband access, and drive economic growth.

Persistent regulatory uncertainty and operational halts, even amid court orders, could undermine confidence in the predictability and coherence of the country’s regulatory environment.

“Investors take their cues from how disputes are managed, not just how they begin. A market where regulatory jurisdiction is unclear and where resolving that uncertainty causes disruption will struggle to attract the kind of long-term investment Nigeria needs. That is not a warning we make lightly,” Adebayo warned.

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ALTON has called on the FCCPC and NCC to urgently pursue inter-agency coordination to resolve the jurisdictional conflict and restore clarity to the market. The association urged all parties to ensure the resolution process fully respects the framework established by the courts and expressed its readiness to engage constructively with regulators and the Federal Government.

As the standoff continues, the human cost is mounting. Small businesses that depend on daily airtime credit to operate are facing mounting pressure, while consumer trust in digital services faces erosion.

Industry analysts say a swift, coordinated resolution, whether through harmonised guidelines, clearer jurisdictional boundaries, or strengthened inter-agency protocols, could ultimately strengthen the sector by balancing legitimate consumer protection concerns with the need to preserve innovative services that have empowered millions of Nigerians.

Until then, the regulatory rift over airtime credit stands as a high-stakes test for Nigeria: can the country protect consumers without choking off vital economic tools and undermining the very investment climate it seeks to build?