FCCPC Denies Banning Airtime Borrowing
The Federal Competition and Consumer Protection Commission has rejected claims that it banned airtime borrowing and data advance services in Nigeria, attributing recent disruptions to non-compliance by telecom operators with consumer lending regulations introduced eight months ago.
Ondaje Ijagwu, Director of Corporate Affairs at the Commission, said in a statement issued Friday that “no directive was issued preventing consumers from accessing lawful telecom value-added services.” He described reports of a regulatory ban as “incorrect” and “mischievous,” alleging they were driven by “vested interests and their foreign collaborators” opposed to market reforms.
The clarification follows separate announcements by MTN Nigeria and Airtel that they had temporarily suspended airtime and data credit services, which allow prepaid customers to borrow and repay upon next recharge. Both operators did not specify when the services would resume.
Ijagwu explained that the Commission introduced the DEON Consumer Lending Regulations in July 2025 in response to “a deluge of consumer complaints bordering on opaque charges, unexplained deductions, aggressive recovery practices, and poor disclosure standards.” The framework requires proper registration, clear disclosure of fees and terms, accessible complaint channels, and data protection safeguards.
“At the commencement of the framework in July 2025, affected operators were granted an initial 90-day compliance period to regularise their products, structures, and operations,” the statement read. “That opportunity was not utilised within the prescribed timeframe.”
The Commission extended the deadline to January 5, 2026, but said “necessary compliance steps were still not completed by the relevant operators.” It emphasised that any service suspension should be understood as “a business or compliance decision by those operators, not a ban imposed by the FCCPC.”
The regulator also disclosed findings that some telecom operators engaged in “exclusionary third-party technical arrangements in clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018.” It said the regulations aimed to unlock the market for local participants alongside foreign partners.
Airtime borrowing and data advance services have become essential for millions of Nigerian subscribers. However, complaints over hidden charges and unclear repayment terms have persisted for years, prompting the FCCPC’s intervention as part of broader federal efforts to regulate digital lending.
The Commission urged Nigerians to disregard “sensational claims” and rely on verified information, reaffirming its commitment to “protecting consumers, promoting fair competition, and ensuring transparent digital financial practices.”