By CHARLES CHIJIOKE
A Federal High Court sitting in Abuja has restrained MTN Nigeria and Airtel Networks Limited from suspending or interfering with airtime lending services linked to Nairtime Nigeria Limited, pending the determination of a substantive suit challenging regulatory actions in the sector.
The court, in a ruling delivered on April 24, granted an interim injunction following an ex parte application filed by Nairtime Holdings Limited and Nairtime Nigeria Limited. The plaintiffs had alleged an imminent disruption of their operations by the telecom operators based on directives tied to the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025.
In suit number FHC/ABJ/CS/779/2026, the plaintiffs argued that the planned suspension would affect their access to critical telecom infrastructure including USSD channels, SMS, short codes and billing platforms, thereby undermining their contractual rights and business continuity. They maintained that they operate as licensed value-added service providers under approvals issued by the Nigerian Communications Commission.
Granting the application, the court ordered: “An order of interim injunction restraining the 1st and 2nd defendants/respondents, whether by themselves, their officers, servants, agents, or privies from suspending, restricting, discontinuing, or otherwise interfering with the access of the 2nd plaintiff to their platforms, channels, short codes, SMS, USSD, billing services and other telecommunications-enabled services during the subsistence of the 2nd plaintiff’s valid licence issued by the Nigerian Communications Commission.”
The court further held that telecom operators could not disregard agreed contractual notice periods or dispute-resolution mechanisms in a bid to comply with new regulatory directives, directing that the status quo be maintained pending the outcome of the substantive suit.
The dispute comes amid regulatory tensions following the introduction of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations in July 2025 by the Federal Competition and Consumer Protection Commission. The rules extend licensing requirements to digital and non-traditional lending services, including airtime and data credit offerings.
Earlier in April, MTN and Airtel had suspended services such as XtraTime and data credit offerings, citing compliance obligations under the new regulatory framework. However, the FCCPC has maintained that it did not order a shutdown, describing the suspensions as commercial decisions by the telecom operators.
Industry stakeholders, including the Association of Licensed Telecoms Operators of Nigeria, have argued that the FCCPC may have exceeded its mandate, insisting that services delivered over telecom infrastructure fall under the regulatory purview of the NCC as provided by the Nigerian Communications Act 2003.
The association estimates the airtime lending market to be worth between N300 billion and N400 billion annually.
The court’s intervention is expected to provide temporary relief to millions of subscribers who rely on airtime credit services, while also intensifying the regulatory turf battle between the FCCPC and NCC.
The final outcome of the case could redefine oversight boundaries in Nigeria’s fast-growing digital lending and telecom services market, with potential implications for consumer access, operator compliance costs and future innovation in mobile financial services.
