Court orders signal return of Airtime credit services

By: Amarachi Okonkwo 

Millions of telecom subscribers in Nigeria may soon regain access to airtime and data credit services following interim court orders that have temporarily halted enforcement actions linked to new digital lending regulations.

In a ruling delivered on April 24, 2026, the Federal High Court in Abuja restrained telecom operators, including MTN Nigeria Communications Plc and Airtel Networks Limited, from suspending or restricting services provided to Nairtime Nigeria Limited. The order followed an ex parte application filed by Nairtime Holdings Limited and its subsidiary, which challenged what they described as imminent disruptions to their operations.

In Suit No. FHC/ABJ/CS/779/2026, the plaintiffs argued that the telecom firms planned to cut off access to critical service channels—including USSD, SMS, short codes, and billing platforms—based on directives tied to the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 (DEON Regulations). They maintained that such actions would unlawfully interfere with their contractual rights and business continuity, noting that they operate as licensed Value Added Service providers under approvals issued by the Nigerian Communications Commission.

Granting the interim injunction, the court ordered that the status quo be maintained pending the determination of the substantive suit.

 It further held that telecom operators could not disregard existing contractual notice periods or dispute-resolution mechanisms in an attempt to comply with new regulatory directives. The ruling effectively preserves Nairtime Nigeria Limited’s access to telecom infrastructure required to deliver its airtime advance and digital lending services.

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A similar development occurred in Lagos, where the Federal High Court, in a ruling on April 15, 2026, granted interim relief in Suit No. FHC/L/CS/720/2026. Presiding judge Ambrose Lewis-Allagoa restrained the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing key provisions of the DEON Regulations against the Wireless Application Service Providers Association of Nigeria.

The court barred the FCCPC from implementing specific sections of the regulations, imposing sanctions, or taking any steps that could disrupt the operations of service providers pending the hearing of an interlocutory injunction. It also prohibited the commission from interfering with WASPAN members’ ability to continue offering services governed by the regulations.

The rulings come in the wake of widespread disruption to airtime and data credit services, including offerings such as XtraTime, which were suspended in mid-April. Telecom operators cited compliance requirements under the new regulatory framework as the basis for the shutdown, which affected millions of prepaid users who rely on airtime borrowing as a form of short-term credit.

Introduced in July 2025 by the FCCPC, the DEON Regulations extended a licensing regime to digital and non-traditional lending services, explicitly covering airtime and data credit products. Although compliance deadlines were extended twice, enforcement actions began in April 2026, triggering uncertainty across the telecom and fintech ecosystem.

Industry stakeholders have pushed back against the FCCPC’s authority, arguing that services delivered via telecom infrastructure fall within the jurisdiction of the Nigerian Communications Commission under the Nigerian Communications Act 2003. The dispute highlights a broader regulatory overlap between sector-specific and cross-sector consumer protection frameworks.

Market analysts estimate the annual value of airtime lending transactions in Nigeria at between N500 billion and N1.2 trillion, underscoring the segment’s significance as a de facto microcredit system. The services are widely used by small businesses, informal sector workers, and low-income earners who depend on mobile connectivity for daily economic activities.

While the FCCPC has maintained that it did not mandate the suspension of airtime credit services describing the move as a commercial decision by telecom operators industry groups have called for compliance with existing court orders and renewed stakeholder engagement to resolve the impasse.

Both cases have been adjourned for further hearings on interlocutory injunctions, leaving the future regulatory framework for digital lending services in Nigeria subject to judicial determination.