In a significant development for Nigeria’s telecommunications sector, two divisions of the Federal High Court have issued interim injunctions restoring airtime lending services and restraining the enforcement of the contentious regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
This was as the House of Representatives urged the Nigerian Communications Commission (NCC) to extend the waiting period before inactive phone numbers are reassigned to new users to 18 months.
FCCPC had introduced the controversial Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations in 2025, prompting the legal action by the telecom firms.
The rulings, delivered in Lagos and Abuja, restored services relied upon by millions of Nigerians and offered relief to licensed Value Added Service providers caught in the dispute.
In Lagos, Justice Ambrose Lewis-Allagoa, on April 15, 2026, granted four interim injunctions in suit marked FHC/L/CS/760/2026, filed by the Wireless Application Service Providers Association of Nigeria (WASPA) against FCCPC.
The court restrained the commission, its officers and agents from enforcing the DEON Regulations, including several key provisions of the framework.
It further barred the FCCPC from interfering with the operations of WASPA members, imposing sanctions or fines for alleged non-compliance, or issuing directives connected to the enforcement of the regulations and adjourned to April 17, 2026, for further hearing.
Relatedly, the Federal High Court in Abuja on April 24, 2026, granted an interim order in suit marked FHC/ABJ/CS/779/2026 following an ex parte application by Nairtime Holdings Limited and Nairtime Nigeria Limited against MTN Nigeria Communications Plc and Airtel Networks Limited.
The court restrained both telecom operators, their officers and agents from suspending, restricting or otherwise interfering with Nairtime Nigeria Limited’s access to their platforms, including short codes, Short Message Service (SMS), Unstructured Supplementary Service
The order applies for the duration of Nairtime’s valid licence issued by NCC and prevents the operators from relying on the FCCPC regulations as a basis for any disruption.
The applicants had argued that the planned suspension of services was based on a directive linked to the DEON Regulations, despite their compliance with contractual obligations and the absence of any established breach or required notice.
The court found sufficient grounds to grant interim relief pending the determination of the substantive suit.
Taken together, the two rulings effectively place the enforcement of the DEON Regulations on hold, creating a temporary legal framework that allows airtime lending and related services to continue.
The FCCPC is restrained from acting against VAS providers, while telecom operators are prevented from using the regulations to deny licensed operators access to their networks.
The DEON Regulations, introduced by the FCCPC in July 2025, were designed to extend regulatory oversight to unsecured digital lending, including airtime and data credit services.
However, the move triggered strong opposition from industry stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria (ALTON), which argued that the regulations encroached on the NCC’s statutory mandate, created overlapping compliance obligations, and conflicted with an existing memorandum of understanding between the regulators.
The lawmakers said the move would strengthen compliance with the Data Protection Act, 2023, and protect Nigerians from fraud, identity theft and wrongful criminal allegations linked to reassigned SIM cards.
The resolution followed the adoption of a motion sponsored by the member representing Orhionmwon/Uhunmwode Federal Constituency of Edo State, Billy Osawaru, at yesterday’s plenary.
Osawaru proposed that the additional six months should allow for inactive SIM cards due for reallocation to be publicly announced in national newspapers and reported to the police once or twice yearly.
He said the measure would improve transparency and make it easier to resolve criminal or fraudulent cases arising from SIM card reassignment.
The House further observed that the NCC’s Telecom Identity Risk Management Policy allows network operators to deactivate and recycle inactive SIM cards after a defined dormancy period, a policy operators defended as necessary for operational and financial sustainability.
The lawmakers expressed concern that commercial considerations should not override subscriber protection, warning that poorly managed SIM recycling could expose Nigerians to data breaches, financial fraud, and identity theft, especially when recycled numbers remain tied to banking and identity verification systems.
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 framework and ensure stronger safeguards for mobile subscribers, with a report expected within four weeks for further legislative action.