Two divisions of the Federal High Court have issued interim injunctions directing telecom operators, including MTN Nigeria and Airtel Networks Limited, to restore airtime lending services while halting enforcement of controversial regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
The development comes as the House of Representatives called on the Nigerian Communications Commission (NCC) to extend the waiting period before inactive SIM cards are reassigned to new users to 18 months.
The FCCPC had rolled out the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations in 2025, a move that triggered legal challenges from stakeholders in the telecommunications sector.
In Lagos, Justice Ambrose Lewis-Allagoa, on April 15, 2026, granted four interim injunctions in a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against the FCCPC.
The court restrained the commission, its officers, and agents from enforcing the DEON Regulations and barred it from interfering with the operations of WASPA members, including imposing sanctions or issuing directives tied to the regulations.
Similarly, the Federal High Court in Abuja, on April 24, 2026, granted an interim order following an application by Nairtime Holdings Limited and Nairtime Nigeria Limited against MTN and Airtel.
The court directed the telecom operators not to suspend, restrict, or interfere with Nairtime’s access to their platforms, including short codes, SMS, and Unstructured Supplementary Service Data (USSD).
The order remains in effect for the duration of Nairtime’s valid licence issued by the NCC and prevents the operators from relying on the FCCPC regulations to disrupt services.
The applicants argued that the planned suspension of services was based on directives linked to the DEON Regulations, despite meeting contractual obligations and without any proven breach.
The court found sufficient grounds to grant interim relief pending the determination of the substantive case.
Together, the rulings effectively suspend enforcement of the DEON Regulations for now, allowing airtime lending and related services to continue while preventing regulatory actions against licensed Value Added Service providers.
The DEON Regulations, introduced in July 2025, were designed to expand oversight to unsecured digital lending services, including airtime and data credit. However, industry stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria (ALTON), opposed the move, arguing it overlaps with the NCC’s mandate and creates conflicting compliance requirements.
Meanwhile, the House of Representatives has urged the NCC to extend the SIM card reallocation period from the current duration to 18 months to better protect users.
Lawmakers said the move would strengthen compliance with the Data Protection Act, 2023, and help guard against fraud, identity theft, and wrongful criminal accusations linked to recycled phone numbers.
The resolution followed a motion sponsored by Billy Osawaru, who proposed that inactive SIM cards due for reassignment should be publicly announced in national newspapers and reported to the police once or twice yearly.
According to him, the measure would improve transparency and aid investigations into crimes associated with reassigned numbers.
The House noted that while the NCC’s Telecom Identity Risk Management Policy allows operators to deactivate and recycle inactive SIM cards for operational efficiency, subscriber protection must remain a priority.
Lawmakers warned that poorly managed SIM recycling could expose Nigerians to data breaches, financial fraud, and identity theft, especially when old numbers remain linked to banking systems and identity verification platforms.
The House also mandated its Committees on Communications and Commerce to engage the NCC, the Nigeria Data Protection Commission (NDPC), and other relevant agencies to review the policy and recommend stronger safeguards, with a report expected within four weeks.
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