The Federal High Court in Lagos has clarified the respective roles of the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) in Nigeria's fast-growing airtime and data credit market, ruling that while the FCCPC has the power to regulate the sector, it cannot issue licences to companies seeking to operate within it.
Delivering judgment on Monday in Suit No. FHC/L/CS/760/2026, Justice Ambrose Lewis-Allagoa held that the FCCPC is empowered under Sections 104, 105, 106 and 163 of the Federal Competition and Consumer Protection Act (FCCPA) 2018 to investigate anti-competitive conduct, protect consumers and issue regulations governing market behaviour.
However, the court drew a firm distinction between regulatory oversight and licensing authority. It held that nothing in the FCCPA or the DEON Consumer Lending Regulations 2025 authorises the FCCPC to establish a telecommunications licensing regime or issue operating licences to providers of airtime and data credit services.
Instead, the court affirmed that the Nigerian Communications Commission remains the sole statutory authority responsible for licensing operators in the telecommunications sector.
The ruling has immediate implications for the DEON framework introduced by the FCCPC. In April 2026, the Commission announced the approval of five companies to provide airtime and data credit services under the framework: Total Tim Nigeria Limited, Rane Interactive Medien CLS Limited, Mode NG Applications Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited.
With the court holding that the FCCPC lacks licensing powers, the legal basis upon which those approvals were granted is now likely to come under increased regulatory and industry scrutiny.
Justice Lewis-Allagoa also dismissed the preliminary objection filed by the FCCPC challenging the standing of the Wireless Application Service Providers Association of Nigeria (WASPAN) to institute the suit. The court found that WASPAN had validly served the required pre-action notice and had demonstrated a genuine apprehension of enforcement action.
The judge further held that the dispute centred on the interpretation of statutory provisions rather than a claim for damages, adding that any alleged non-compliance with the pre-action notice period did not deprive the court of jurisdiction.
On the substantive issues, however, the court rejected WASPAN's attempt to invalidate the DEON Consumer Lending Regulations. It ruled that the regulations fall within the FCCPC's statutory mandate and do not conflict with the Nigerian Communications Act 2003.
The judgment characterised the relationship between the two regulators as complementary rather than competing. While the FCCPC is responsible for consumer protection, competition regulation and market conduct, the NCC retains exclusive authority over technical regulation, licensing and other sector-specific responsibilities within telecommunications.
In practical terms, the decision means the FCCPC can regulate how airtime and data credit services are offered, enforce consumer protection standards and address anti-competitive practices. What it cannot do is determine which companies are authorised to enter the telecommunications market. That responsibility, the court affirmed, rests exclusively with the NCC.
The judgment represents the first judicial interpretation of the regulatory boundaries governing Nigeria's rapidly expanding airtime and data credit ecosystem, a market estimated to be worth between ₦300 billion and ₦400 billion annually and used daily by about 40 million Nigerians.