The Federal High Court Nigeria has ordered telecom operators MTN Nigeria and Airtel Networks Limited to restore airtime and data credit services, paving the way for millions of subscribers to regain access to the widely used borrowing services.
The ruling follows two separate court decisions challenging the suspension of the services earlier in April 2026.
Services Affected by Suspension
The services, including MTN’s XtraTime and Airtel’s data credit offerings, were suspended in mid-April after compliance concerns linked to new digital lending regulations introduced by the Federal Competition and Consumer Protection Commission.
The suspension affected millions of prepaid users, particularly low-income earners, traders, and small business operators who rely on airtime borrowing for daily communication and business transactions.
Court Injunction Against FCCPC Enforcement
In a ruling delivered on April 15, Justice A. Lewis-Allagoa of the Federal High Court in Lagos granted an interim injunction restraining the FCCPC from enforcing key provisions of its 2025 digital lending regulations against members of the Wireless Application Service Providers Association of Nigeria (WASPAN).
The court also barred the Commission from imposing sanctions or taking actions that could disrupt telecom service operations under the existing regulatory framework.
Second Ruling Strengthens Telecom Operators
Days later, the Federal High Court in Abuja issued another order in a related case involving Nairtime Holdings Limited and Nairtime Nigeria Limited.
The court restrained MTN Nigeria and Airtel Networks Limited from suspending or restricting access to telecom infrastructure such as USSD codes, SMS systems, short codes, and billing platforms based on FCCPC directives.
It also ruled that operators must comply with contractual notice periods and dispute resolution procedures before taking regulatory action.
Regulatory Conflict Between FCCPC and NCC
At the centre of the dispute is a jurisdictional conflict between regulators.
The FCCPC had expanded its oversight in July 2025 to include digital lending services, classifying airtime and data credit as regulated loan products.
However, industry stakeholders argue that the services fall under the jurisdiction of the Nigerian Communications Commission, since they operate through telecom infrastructure governed by the Nigerian Communications Act.
Industry Reaction and Market Impact
Following regulatory uncertainty and potential sanctions, MTN and Airtel temporarily suspended the services, sparking widespread reactions from subscribers.
While the FCCPC maintained it did not directly order the suspension, telecom operators cited compliance risks as justification for their actions.
Industry group WASPAN has called on regulators to respect court orders and engage in coordinated discussions with the NCC and stakeholders.
Analysts estimate that airtime lending transactions in Nigeria are worth between ₦500 billion and ₦1.2 trillion annually, highlighting their importance in supporting informal economic activity.
