Millions of telecom users in Nigeria may soon regain access to airtime and data credit services following separate Federal High Court rulings in Abuja and Lagos that temporarily halted enforcement actions tied to new digital lending regulations.
In Abuja, the Federal High Court on April 24, 2026, issued an interim injunction restraining MTN Nigeria Communications Plc and Airtel Networks Limited from suspending or restricting services provided to Nairtime Nigeria Limited, pending the determination of a substantive case.
The order followed an ex parte application filed by Nairtime Holdings Limited and Nairtime Nigeria Limited, which alleged that telecom operators were planning to disrupt their services, including USSD channels, SMS short codes, and billing systems, based on regulatory directives linked to the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025.
The plaintiffs argued that such actions would unlawfully interfere with their business operations and contractual rights, noting that they are licensed Value Added Service providers approved by the Nigerian Communications Commission.
Ruling on the matter, the court ordered the telecom companies to maintain the status quo and continue providing access to their platforms and services, stating that contractual agreements and dispute-resolution mechanisms must be respected despite regulatory developments.
In a separate ruling in Lagos on April 15, 2026, the Federal High Court also issued an interim injunction restraining the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing provisions of the same lending regulations against members of the Wireless Application Service Providers Association of Nigeria.
The court barred the commission from implementing or applying specific sections of the regulations, or taking any action that could disrupt the operations of service providers, pending the hearing of an interlocutory application.
The controversy began after telecom operators suspended airtime and data credit services, including MTN’s XtraTime and Airtel’s credit offerings, in April 2026, citing compliance requirements under the new regulatory framework.
The suspensions affected millions of prepaid users who rely on airtime borrowing as a short-term credit solution, particularly small business owners and low-income earners.
The FCCPC introduced the DEON Regulations in 2025 to regulate digital and non-traditional lending services, but enforcement triggered disputes over regulatory authority between the commission and the Nigerian Communications Commission.
Industry stakeholders argue that telecom-based lending services fall under telecom regulation, while the FCCPC maintains that operators voluntarily suspended the services rather than being banned.
Both cases are expected to continue at the interlocutory stage as courts determine the validity of enforcement actions under the disputed regulatory framework.
