A public affairs commentator and lawyer, Ilemona Onoja, has warned that Nigerians who borrow airtime could face higher costs following recent regulatory developments affecting airtime and data credit services.
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Onoja spoke while examining the July 20 judgment of the Federal High Court in Lagos in the regulatory dispute between the Wireless Application Service Providers Association of Nigeria (WASPAN) and the Federal Competition and Consumer Protection Commission (FCCPC).
In Suit No. FHC/L/CS/760/2026, Justice A.L. Allagoa upheld the validity of the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, commonly referred to as the DEON Regulations, while also clarifying the respective regulatory roles of the FCCPC and the Nigerian Communications Commission.
Onoja said the additional regulatory and compliance requirements imposed on companies providing airtime credit services could increase their operating costs, with consumers likely to ultimately bear the burden.
“Are my costs going to go up if I borrow credit? Yes. Yes, your cost will go up because of this extra regulatory cost added to the whole thing,” he said.
According to him, service providers would have to undertake additional processes and incur further compliance expenses as a result of the regulatory framework.
“The companies are going to take on extra cost. They are going to be subject to an extra process that is going to cost them money. In economics, we all know that producers pass their extra costs down to the consumers,” Onoja said.
The FCCPC introduced the DEON Regulations to establish standards governing digital and other non-traditional lending services, citing concerns relating to transparency, data privacy, responsible lending and consumer protection.
The regulations came into effect in July 2025 but were subsequently challenged by WASPAN, which questioned the FCCPC’s authority to regulate activities in the telecommunications value-added services sector, particularly airtime and data credit services.
In its July 20 judgment, the Federal High Court upheld the regulations but clarified that the NCC remains the primary regulator of the telecommunications industry, while the FCCPC may exercise a subsidiary consumer-protection role provided its regulations do not conflict with those issued by the sector regulator.
Explaining the effect of the judgment, Onoja said the decision brought greater clarity to the relationship between the two regulatory agencies.
“The court also, at least, clarified that if the NCC as the primary industry regulator does a set of regulations, the FCCPC can do a subsidiary set of regulations, but that subsidiary set of regulations must not conflict with the primary industry regulator,” he said.
He said the decision was particularly significant in relation to telecommunications licensing and technical regulation.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, has also called for clearer coordination between the NCC and FCCPC following the judgment.
Adebayo said airtime and data credit services were used by about 40 million Nigerians and urged both regulators to clearly define their respective responsibilities to avoid disruptions to consumers and uncertainty for operators.
“What is happening in the airtime credit market is not simply a dispute between regulators. It is a test of whether the structures that underpin business confidence in this country are functioning as they should,” he said.
The NCC and FCCPC had in January 2025 signed a memorandum of understanding aimed at strengthening regulatory cooperation and consumer protection in the telecommunications industry.
NCC Executive Vice Chairman and Chief Executive Officer, Aminu Maida, described the agreement at the time as the beginning of a strategic partnership between the two regulators focused on consumer welfare, fair competition and consumer protection.
The FCCPC has maintained that its intervention in the airtime credit sector is aimed at protecting consumers rather than stopping airtime borrowing or data advance services.
Its Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the DEON Regulations were introduced in response to complaints involving harassment, data breaches, opaque charges, aggressive recovery practices and other alleged abuses associated with digital lending.
“For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders,” Bello said.
He added that innovation was welcome but should not operate at the expense of consumer rights or the rule of law.
The commission has repeatedly maintained that it did not ban airtime borrowing or data advance services, saying its intervention was aimed at ensuring transparency, accountability and responsible consumer practices.
The FCCPC had suspended enforcement of the regulations following an interim order of the Federal High Court in Lagos in the WASPAN suit. Following the July 20 judgment, however, the commission resumed implementation of the regulatory framework.
WASPAN has since challenged the judgment at the Court of Appeal.
Onoja called for stronger coordination among relevant government agencies, saying clearer regulatory responsibilities would reduce uncertainty for businesses while protecting consumers from unnecessary costs and disruptions.
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