Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
A Federal High Court sitting in Lagos has directed MTN Nigeria and Airtel Networks Limited to immediately restore their airtime and data lending services, bringing relief to millions of prepaid subscribers who rely on the popular “borrow credit” and “borrow data” features for emergency communication and daily economic activities. The ruling, delivered on Tuesday, April 28, 2026, by Justice Ibrahim Musa, held that the suspension of the services without proper regulatory backing was unfair to consumers who depend on the feature as a vital stopgap for low-income earners, traders, and small business operators. The court further stated that telecom providers must operate within the framework of consumer protection laws and ensure that subscribers are not subjected to abrupt service withdrawals.
The affected services, including MTN Nigeria’s XtraTime and Airtel’s data credit offerings, were halted mid-April following compliance concerns linked to new digital lending regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC). In a move that sparked widespread backlash, the FCCPC had extended its oversight to digital lending services under its Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations 2025, bringing airtime and data credit products under a licensing framework originally designed to regulate exploitative loan applications. Faced with regulatory uncertainty and potential sanctions, MTN and Airtel opted to suspend the services, leaving millions of prepaid users stranded and unable to borrow airtime during emergencies. Several subscribers recounted their frustration, with mobile-only workers and petty traders describing the shutdown as a sudden contraction of micro-liquidity, cutting off their essential connectivity for coordinating daily trade.
The Lagos ruling was the culmination of a series of judicial interventions that have reshaped the regulatory landscape of Nigeria’s telecommunications sector. On April 15, 2026, in a separate suit marked FHC/L/CS/760/2026, Justice A. Lewis-Allagoa granted four interim injunctions restraining the FCCPC from enforcing the DEON regulations against members of the Wireless Application Service Providers Association of Nigeria (WASPA). The court barred the commission from imposing sanctions, issuing further directives, or taking actions that could hinder service providers from operating within the existing telecom framework.
Days later, the Federal High Court in Abuja issued a more direct order in a suit involving Nairtime Holdings Limited and Nairtime Nigeria Limited. The court restrained MTN Nigeria and Airtel Networks Limited from suspending or restricting the companies’ access to telecom infrastructure — including short codes, USSD channels, SMS systems, and billing platforms — on the basis of the FCCPC regulations. The Abuja court further ruled that telecom operators could not disregard contractual notice periods or dispute resolution procedures in a bid to comply with newly introduced regulatory directives.
The twin rulings effectively undermined the legal justification cited by telecom operators for suspending airtime and data credit services, raising expectations that services could be restored imminently. At the centre of the dispute is a lingering jurisdictional clash between regulators. Industry stakeholders, including the Wireless Application Service Providers Association of Nigeria (WASPAN), have consistently argued that airtime and data lending services fall squarely under the regulatory authority of the Nigerian Communications Commission (NCC), as they are delivered via telecom infrastructure governed by the Nigerian Communications Act of 2003. The Nigerian Communications Commission (NCC) has historically licensed Value Added Service (VAS) providers for such offerings, while the FCCPC’s DEON regulations, introduced in 2025, were aimed at a broader set of digital lenders.
The judicial decisions have provided much-needed clarity for investors who feared that mid-stream regulatory changes could jeopardize established commercial frameworks. The courts found that the FCCPC could not bypass the “sanctity of contract,” ruling that telecom operators are not entitled to ignore the mandatory 30-day notice and cure periods in their agreements with fintech partners simply to comply with the new DEON framework. The rulings have also reaffirmed that Value Added Service licences issued by the NCC remain valid and must be respected pending due process, describing the earlier suspension as an interference with established regulatory authority.
The economic impact of the disruption was severe. Industry analysts estimate that airtime lending transactions in Nigeria are worth between ₦500 billion and ₦1.2 trillion annually, highlighting their role as a critical layer of informal microcredit supporting economic activity, particularly within the informal sector, which accounts for over 80 per cent of Nigeria’s employment. The disruption was estimated to put between ₦500 billion and ₦1.2 trillion in annual micro-transactions at risk. Small-scale entrepreneurs, artisans, and low-income earners who depend on uninterrupted mobile connectivity for daily business activities were hit hardest. The judicial pushback aligns with President Bola Tinubu’s “Renewed Hope” agenda and his administration’s recent emphasis on regulatory consistency and the ease of doing business.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has called for the urgent resolution of the ongoing regulatory dispute, warning that prolonged uncertainty could harm consumers and weaken investor confidence. ALTON Chairman, Gbenga Adebayo, in a statement on Tuesday, said the situation goes beyond a disagreement between regulators, describing it as a critical test of the country’s regulatory credibility. “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. He stressed that the impact of the disruption is being felt most by ordinary Nigerians who rely on airtime credit as a financial lifeline, noting that the market plays a critical role for traders, artisans, and small-scale entrepreneurs who depend on short-term credit for daily transactions.
Reacting to the development, a telecom subscriber, Chinedu Okeke, said, “This is a welcome development. Many of us depend on borrowed airtime, especially during emergencies. The suspension affected communication badly.” Another user, Aisha Bello, described the ruling as timely, adding that “not everyone always has immediate access to recharge, so this service is very important.” The FCCPC has insisted it did not order the suspension and described the shutdown as a business decision by the telecom operators, but industry players have pushed back, accusing the commission of regulatory overreach.
Both cases have been adjourned for further hearings, and attention has now shifted to how quickly telecom operators will move to restore the services after nearly two weeks of disruption. While MTN and Airtel are yet to issue official statements on when full implementation of the court order will take effect, the rulings have set a significant precedent, reinforcing the primacy of statutory licences and contractual obligations in Nigeria’s digital and telecom ecosystem. For now, millions of subscribers can expect the return of a service that, for many, functions as a daily financial bridge.
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