Two separate rulings by the Federal High Court have temporarily halted actions affecting airtime lending and digital credit services, reinforcing the position of service providers amid an ongoing regulatory dispute.
In one of the cases, the plaintiffs argued that any attempt to suspend or restrict their operations would amount to unlawful interference with their contractual rights. They maintained that they are duly licensed Value Added Service providers operating under valid approvals issued by the Nigerian Communications Commission (NCC), adding that they had fulfilled all contractual obligations without receiving any formal breach notice.
Delivering its ruling, the court granted an interim injunction restraining the defendants from interfering with the second plaintiff’s access to telecom platforms and services.
The order covers channels such as short codes, SMS, USSD, billing systems, and other telecommunications-enabled operations tied to its licensed activities.
The court further emphasised that telecom operators cannot bypass agreed contractual notice periods or dispute-resolution mechanisms in an attempt to comply with new regulatory directives.
It directed all parties to maintain the status quo pending the determination of the substantive suit, noting that the plaintiff’s licence remains valid under existing laws.
The ruling specifically safeguards the operations of Nairtime Nigeria Limited, particularly its airtime advance and digital lending services, which depend on uninterrupted access to telecom infrastructure.
In a related development, the Federal High Court in Lagos also issued interim orders restraining the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing provisions of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025 against members of the Wireless Application Service Providers Association of Nigeria.
In the ruling delivered on April 15, 2026, Justice Ambrose Lewis-Allagoa barred the commission from implementing key aspects of the regulations, imposing sanctions, or taking steps that could disrupt the operations of service providers pending the hearing of an interlocutory injunction.
The court also restrained the FCCPC from interfering with or preventing the association’s members from continuing to deploy services governed by the regulations until the matter is fully resolved.
The legal tussle follows the mid-April suspension of airtime credit services by telecom operators, including offerings such as MTN’s XtraTime and Airtel’s data credit services.
The operators had cited compliance requirements linked to the FCCPC’s regulatory framework.
The suspension affected millions of prepaid subscribers nationwide, many of whom rely on airtime borrowing as a form of short-term credit.
The disruption occurred without prior notice, leaving users uncertain about when services would resume.
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The FCCPC had introduced the lending regulations in July 2025, extending licensing requirements to digital and non-traditional lending platforms, including airtime and data credit services.
Although compliance deadlines were extended twice, enforcement actions began in April, prompting operators to suspend services amid regulatory uncertainty.
However, industry stakeholders argue that the commission overstepped its authority, insisting that services delivered through telecom infrastructure fall under the NCC’s jurisdiction as provided by the Nigerian Communications Act 2003.
Estimates within the industry suggest that airtime lending transactions are valued between N500 billion and N1.2 trillion annually, serving as a vital microcredit system for small businesses, artisans, and low-income earners.
While the FCCPC has denied banning airtime credit services, describing the suspensions as commercial decisions by telecom operators, the service providers’ association has called for strict compliance with court orders and constructive engagement to resolve the dispute.
Both cases have been adjourned for further hearing on interlocutory applications.