The Federal Competition and Consumer Protection Commission (FCCPC) has denied allegations that it banned MTN, Airtel, and other network operators from offering airtime and data borrowing services.
The FCCPC disclosed that it did not ban airtime and data borrowing but is instead trying to regulate the service. They explained that the suspension announced by some telecom operators is due to their non-compliance with regulatory efforts, despite an initial grace period.
The FCCPC explained that it is attempting to regulate the service as part of a broader oversight effort on all lending services. This follows a surge in customer complaints over opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability in segments of the digital lending and advance-services market.
As such, the commission issued the DEON Consumer Lending Regulations in July 2025.
The regulation seeks to curb the excesses of abusive service providers harming consumers and undermining market confidence. It also aims to promote a more transparent system by mandating proper registration and responsible lending conduct, among others. This will also facilitate clear disclosure of fees and terms, accessible complaint channels, data protection safeguards and stronger accountability.
According to the FCCPC, telecom operators engaged in exclusionary third-party technical arrangements violating Consumer protection laws. However, the new regulation will unlock the market to allow local participants alongside foreign partners.
“These measures benefit Nigerians by reducing abusive practices, improving transparency, strengthening consumer choice, and encouraging responsible innovation by legitimate operators,” the commission added.
Meanwhile, the FCCPC stressed that it granted an initial 90-day compliance period in July 2025 to all companies. This was followed by an additional extension till Jan. 5, 2026 which some telecom providers still didn’t comply with.
The commission stated that;
Notwithstanding clear regulatory requirements, some operators chose to maintain the status quo by failing to register and regularise their services. In doing so, they continued operating monopolistic models that had long generated consumer complaints, including concerns relating to transparency, deductions, charges, and accountability.
“Any temporary suspension, restriction, or operational change introduced by service providers should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC,” they added.
