Relief for MTN, Airtel subscribers as court stops crackdown on airtime credit services

Millions of Nigerian telecom subscribers may soon regain access to airtime and data credit services following separate rulings by the Federal High Court in Abuja and Lagos, which restrained enforcement actions linked to new digital lending regulations.

The courts’ decisions effectively halt moves that had led to the suspension of popular airtime credit offerings, including services provided by MTN Nigeria Communications Plc and Airtel Networks Limited, amid regulatory uncertainty.

In Abuja, the Federal High Court, in a ruling delivered on April 24, 2026, granted an interim injunction restraining the telecom operators from suspending or interfering with services provided to Nairtime Nigeria Limited. The order followed an ex parte application filed by Nairtime Holdings Limited and its subsidiary, which alleged imminent disruption to their operations.

The suit, marked FHC/ABJ/CS/779/2026, challenged actions allegedly stemming from the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025. The plaintiffs argued that the telecom firms planned to cut off access to critical service infrastructure, including USSD channels, SMS, short codes, and billing platforms.

They maintained that such actions would violate existing contractual agreements and disrupt licensed operations approved by the Nigerian Communications Commission.

Granting the application, the court ordered that the status quo be maintained pending the determination of the substantive suit, affirming that the plaintiffs hold a valid operating licence under the Nigerian Communications Act.

The ruling also underscored that telecom operators could not override agreed contractual notice periods or dispute resolution mechanisms in a bid to comply with newly introduced regulatory directives.

Similarly, the Federal High Court in Lagos, in a separate ruling delivered on April 15, 2026, restrained the Federal Competition and Consumer Protection Commission from enforcing key provisions of the same regulations against service providers.

In Suit No. FHC/L/CS/720/2026, the court granted interim orders in favour of the Wireless Application Service Providers Association of Nigeria, barring the commission from implementing or enforcing several sections of the regulations pending the hearing of an interlocutory injunction.

Justice Ambrose Lewis-Allagoa held that the commission must refrain from taking any steps capable of disrupting the operations of service providers, including the imposition of sanctions or restrictions tied to the new regulatory framework.

The rulings come in the wake of a widespread disruption to airtime credit services, which were suspended in mid-April after telecom operators cited compliance concerns under the new regulations introduced in 2025.

The suspension affected millions of prepaid subscribers across Nigeria who rely on airtime borrowing as a form of short-term credit, particularly in the informal sector where access to conventional banking services remains limited.

Industry stakeholders estimate that airtime lending transactions in Nigeria are valued between N500 billion and N1.2 trillion annually, highlighting the scale and importance of the services to everyday economic activity.

The regulatory dispute centres on the scope of authority between the FCCPC and the NCC. Service providers argue that offerings delivered via telecom infrastructure fall squarely under the NCC’s jurisdiction, as stipulated in the Nigerian Communications Act 2003.

They contend that the FCCPC’s Digital Lending Regulations extend beyond its statutory mandate, creating overlapping oversight that has triggered operational uncertainty within the sector.

However, the FCCPC has maintained that it did not ban airtime credit services, insisting that the suspension was a commercial decision taken independently by telecom operators in response to compliance requirements.

The commission has also defended the regulations as necessary to bring transparency and accountability to Nigeria’s rapidly growing digital lending ecosystem.

Despite this, industry groups have called for greater coordination among regulators to avoid policy conflicts that could disrupt essential services.