Court stops telcos from suspending airtime credit services

Juliet Anine
3 Min Read

 

A Federal High Court in Abuja has restrained telecommunications firms MTN Nigeria and Airtel Networks Limited from suspending or restricting services provided to Nairtime Nigeria Limited pending the determination of a substantive suit challenging regulatory actions linked to digital lending operations.

The interim order, contained in a Certified True Copy obtained on Tuesday, followed an ex parte application filed by Nairtime Holdings Limited and Nairtime Nigeria Limited over what they described as a threatened disruption of their business operations by the telecom operators.

The court granted an order restraining the defendants from suspending, restricting, or interfering with the plaintiff’s access to platforms, channels, short codes, SMS, USSD services, billing services, and other telecommunications-enabled operations.

The court further held that telecom operators could not set aside agreed contractual notice periods and dispute-resolution mechanisms in a bid to comply with new regulatory directives.

Similarly, the Federal High Court in Lagos, in a ruling delivered on April 15, 2026, granted interim orders restraining the Federal Competition and Consumer Protection Commission from enforcing provisions of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 against the Wireless Application Service Providers Association of Nigeria.

The Lagos court barred the commission from implementing key provisions of the regulations, imposing sanctions, or taking steps that could hinder service providers from continuing their operations.

Airtime credit services, including MTN’s XtraTime and Airtel’s data credit offerings, were suspended in mid-April after both operators cited compliance obligations under the new regulatory framework introduced by the FCCPC. The disruption affected millions of prepaid subscribers who rely on airtime borrowing as a form of short-term credit.

The commission had introduced the DEON Regulations in July 2025, extending a licensing regime to cover digital and non-traditional consumer lending, including airtime and data credit services. Compliance deadlines were extended twice before enforcement actions commenced in April.

Industry stakeholders contend that the commission exceeded its statutory mandate, arguing that services delivered over telecom infrastructure licensed by the Nigerian Communications Commission fall within the regulatory purview of the telecoms regulator under the Nigerian Communications Act 2003.

Both matters have been adjourned for an interlocutory hearing.

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