FCCPC Backs Down as Airtel and Glo Resume Airtime Loans Amid Court Battle

In a quiet but significant move, telecommunications operators Airtel and Glo have restored their emergency airtime lending services across Nigeria, bringing relief to millions of subscribers who depend on the feature for daily calls, texts, and micro-business operations.

The reversal follows the Federal Competition and Consumer Protection Commission’s (FCCPC) decision to suspend its controversial Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.

The suspension came after a Federal High Court in Lagos ordered the Commission to halt enforcement of the rules, pending the outcome of a lawsuit challenging its authority over telecom-based airtime advances.

The return of these services reopens a crucial liquidity channel in Nigeria’s informal economy. Industry estimates value the annual airtime lending market at over ₦400 billion, serving as a lifeline for unbanked and underbanked citizens who rely on micro-transactions for trade and connectivity.

The earlier suspension had threatened to disrupt daily commerce, making the restoration a major relief for public welfare and retail liquidity.

The dispute highlights a deepening regulatory tug-of-war in Nigeria’s digital finance space. The FCCPC had introduced the DEON Regulations to bring airtime lending under consumer credit rules, citing over 11,000 complaints related to digital lending abuses. But telecom operators pushed back, arguing that airtime advances are value-added services governed by telecoms law, not conventional loans.

The tension escalated when Justice A. Allagoa issued an injunction against the FCCPC, followed by contempt proceedings against the Commission’s Executive Vice Chairman, Tunji Bello. In response, the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, confirmed a suspension of the rules in deference to the rule of law.

Ayo Stuffman, Chairman of the Wireless Application Service Providers Association of Nigeria (WASPAN), confirmed that lending services on Airtel and Glo are now back online.

While the immediate crisis has eased, the broader legal uncertainty remains. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), has warned that overlapping regulations could hurt investor confidence.

The telecom sector is a major contributor to Nigeria’s non-oil GDP and a key destination for foreign direct investment. Without clear boundaries, long-term capital for infrastructure expansion may be at risk.

The FCCPC has already indicated it will challenge the court order, meaning the current truce is temporary. The final verdict will decide not only who regulates airtime advances but also set a precedent for Nigeria’s rapidly growing digital credit ecosystem.

For now, stability has returned, but sustainable growth depends on building a predictable, collaborative regulatory environment that balances consumer protection with innovation.