Millions of Nigerian telecom subscribers could soon regain access to airtime and data credit services after two Federal High Court rulings restrained enforcement actions linked to new digital lending regulations.
In separate decisions delivered in Abuja and Lagos, the courts stopped attempts that could disrupt airtime lending and related telecom-enabled financial services operated through mobile networks.
In Abuja, the Federal High Court on April 24, 2026, restrained telecom operators MTN Nigeria Communications Plc and Airtel Networks Limited from suspending or restricting services provided to Nairtime Nigeria Limited pending the hearing of a substantive suit.
The ruling followed an ex parte application filed by Nairtime Holdings Limited and Nairtime Nigeria Limited, which accused the telecom firms of threatening to disrupt their business operations.
In Suit No. FHC/ABJ/CS/779/2026, the plaintiffs argued that the operators planned to suspend or interfere with their access to telecom platforms, including USSD channels, SMS, short codes and billing services, allegedly based on directives arising from the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025.
The companies maintained that they are licensed Value Added Service providers operating under approvals issued by the Nigerian Communications Commission and had not breached any contractual obligations.
Granting the application, the court ordered that MTN and Airtel must not interfere with Nairtime Nigeria’s telecom-enabled services while its NCC licence remains valid.
The court ruled:
“An Order of Interim Injunction restraining the 1st and 2nd Defendants/Respondents… from suspending, restricting, discontinuing, or otherwise interfering with the access of the 2nd Plaintiff to their platforms, channels, short codes, SMS, USSD, billing services and other telecommunications-enabled services.”
The court also held that telecom operators could not ignore existing contractual notice periods and dispute-resolution mechanisms in an attempt to comply with new regulatory directives.
Meanwhile, the Federal High Court in Lagos issued a similar order on April 15, 2026, restraining the Federal Competition and Consumer Protection Commission from enforcing parts of the same regulations against the Wireless Application Service Providers Association of Nigeria.
Justice Ambrose Lewis-Allagoa barred the FCCPC from implementing key provisions of the regulations or taking actions that could prevent service providers from continuing operations pending further hearings.
The judge stated:
“An Order of Interim Injunction is granted… restraining the Defendant… 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.”
The court further restrained the commission from interfering with members of the association providing services governed by the regulations.
Airtime credit services such as MTN’s XtraTime and Airtel’s data credit offerings were suspended in mid-April after telecom operators cited compliance concerns under the FCCPC’s new regulatory framework.
The disruption affected millions of prepaid subscribers who depend on airtime borrowing as a form of short-term credit, especially low-income earners and small business operators.
The FCCPC introduced the DEON Regulations in July 2025 to extend licensing requirements to digital and non-traditional consumer lending services, including airtime and data credit products. Enforcement actions began in April after multiple deadline extensions.
However, industry stakeholders argue that the commission exceeded its authority, insisting that services delivered through telecom infrastructure licensed by the NCC fall under the Nigerian Communications Act 2003 and should remain within the telecom regulator’s oversight.
Industry estimates value annual airtime lending transactions at between N500 billion and N1.2 trillion, highlighting the sector’s importance as an informal microcredit system.
The FCCPC has insisted it did not ban airtime credit services, describing the suspensions as commercial decisions made by telecom operators.
The Wireless Application Service Providers Association of Nigeria has urged the commission to obey existing court orders and engage stakeholders to resolve the dispute.
Both cases have been adjourned for interlocutory hearings.
