Courts Clear Way for telcos to Resume Airtime Credit for Millions of Nigerians

Millions of Nigerian telecom subscribers may soon regain access to airtime and data credit services after two Federal High Courts issued orders that effectively remove the regulatory basis for their suspension, a significant intervention in favour of consumer access across Nigeria’s digital economy. The services, including MTN’s XtraTime and Airtel’s data credit product, went offline […]

Millions of Nigerian telecom subscribers may soon regain access to airtime and data credit services after two Federal High Courts issued orders that effectively remove the regulatory basis for their suspension, a significant intervention in favour of consumer access across Nigeria’s digital economy.

The services, including MTN’s XtraTime and Airtel’s data credit product, went offline in mid-April after both operators cited compliance obligations under new digital lending regulations introduced by the Federal Competition and Consumer Protection Commission. For millions of prepaid subscribers who rely on airtime borrowing as a form of short-term credit, the disruption landed without warning and without a clear timeline for restoration.
The first intervention came from the Federal High Court in Lagos, where Justice A. Lewis-Allagoa granted an interim injunction on April 15, restraining the FCCPC from enforcing key provisions of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 against members of the Wireless Application Service Providers Association of Nigeria (WASPAN).
The court barred the commission from imposing sanctions, issuing further directives, or taking any steps that would prevent service providers from continuing to operate under the framework.
A second and more pointed order followed from the Federal High Court in Abuja, which granted relief to Nairtime Holdings Limited and Nairtime Nigeria Limited, directly restraining MTN Nigeria and Airtel Networks from suspending or restricting the company’s access to their platforms, channels, short codes, SMS, USSD and billing infrastructure on the basis of the FCCPC regulations.
The Abuja court further noted that telecom operators could not set aside agreed-upon contractual notice periods and dispute-resolution mechanisms to comply with new regulatory directives. Together, the two rulings strike at the legal foundation on which the suspensions were made.
At the heart of the dispute is a jurisdictional question that regulators have not yet resolved. The FCCPC introduced the DEON Regulations in July 2025, bringing airtime and data lending within a licensing framework originally designed to address predatory loan apps and their well-documented abuses.
Operators were given compliance deadlines that were extended twice before the FCCPC moved toward enforcement in April. MTN and Airtel, facing an uncertain regulatory environment, suspended their services rather than risk sanctions.
WASPAN and the companies that took the matter to court argue that the FCCPC overstepped its authority and that regulating services delivered over NCC-licensed telecoms infrastructure falls within the mandate of the Nigerian Communications Commission under the Nigerian Communications Act 2003.
Industry estimates place the annual value of airtime lending transactions at between 500 billion and 1.2 trillion naira, much of it driven by informal sector activity. Analysts say the services serve as critical microcredit infrastructure for small traders, artisans, and low-income earners who depend on uninterrupted mobile connectivity to conduct daily business.
The FCCPC has maintained that it did not ban airtime borrowing services and that any suspensions were business decisions made by the operators themselves. WASPAN has disputed that position and called on the commission to comply with the court orders, refrain from further public statements that prejudge the proceedings, and engage in immediate dialogue with the NCC and industry stakeholders.
Both matters have been adjourned for interlocutory hearing. For now, attention has shifted to how quickly MTN and Airtel move to restore what millions of their customers have been without for the better part of two weeks.