- Millions of telecom users in Nigeria may soon regain access to airtime and data borrowing services.
- Recent court decisions have questioned the legal basis for the suspension of these services.
- Services like MTN’s XtraTime and Airtel’s data credit were suspended in mid-April.
Millions of telecom users in Nigeria could soon regain access to airtime and data borrowing services following recent court decisions that have challenged the legal basis for their suspension earlier in April, according to reports.
Services like MTN’s XtraTime and Airtel’s data credit offerings were abruptly paused around mid-April after regulatory concerns emerged from new digital lending guidelines issued by the Federal Competition and Consumer Protection Commission (FCCPC).
The suspension affected millions of prepaid customers who depend on these short-term credit services, especially traders, small business owners, and low-income earners who rely on them for daily communication and business activities.
A significant turn came on April 15, when the Federal High Court sitting in Lagos, presided over by Justice A. Lewis-Allagoa, granted an interim order restraining the FCCPC from enforcing key provisions of its 2025 lending regulations against members of the Wireless Application Service Providers Association of Nigeria (WASPAN).
The court further prohibited the commission from imposing penalties or issuing directives that could interfere with telecom operators working under existing regulatory frameworks.
In a separate ruling in Abuja, the Federal High Court also reinforced the position of service providers. The case, involving Nairtime Holdings Limited and Nairtime Nigeria Limited, resulted in a directive preventing telecom operators from blocking access to essential systems such as USSD codes, short codes, SMS platforms, and billing infrastructure used for airtime and data credit services.
The court also emphasized that operators must follow proper contractual procedures, including notice periods and dispute resolution mechanisms, even when complying with regulatory instructions.
These rulings have raised questions about the legitimacy of the suspension, increasing expectations that telecom companies may restore the services soon.
The dispute stems from regulatory overlap. In July 2025, the FCCPC expanded its oversight to include digital lending activities, bringing airtime and data credit services under a licensing regime aimed at curbing exploitative lending practices.
However, industry stakeholders, including WASPAN, argue that these services fall under the jurisdiction of the Nigerian Communications Commission (NCC) because they operate through telecom infrastructure governed by communications law.
Faced with regulatory uncertainty and potential sanctions, telecom operators opted to suspend the services, a decision that drew widespread public criticism.
While the FCCPC has maintained that it did not directly order the shutdown, describing it instead as a business decision by operators, industry players accuse the commission of overreaching its authority.
WASPAN has urged the FCCPC to respect the court rulings, avoid public comments that could influence ongoing litigation, and engage relevant stakeholders, including the NCC, to resolve the dispute.
Industry estimates place Nigeria’s airtime lending market at between ₦500 billion and ₦1.2 trillion annually, underscoring its role as a critical informal credit system supporting everyday economic activity.
Although the cases have been adjourned for further hearings, attention remains on telecom operators and how quickly they will restore services that millions of subscribers have been without for nearly two weeks.
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