FCCPC Denies Banning Airtime Borrowing and Data Advance Services
The Federal Competition and Consumer Protection Commission (FCCPC) has issued a clear statement refuting claims that it has prohibited airtime borrowing or data advance services in Nigeria. The commission emphasized that no directive has been issued preventing consumers from accessing lawful telecom value-added services, contrary to circulating misinformation.
Background of the DEON Consumer Lending Regulations
In response to a significant volume of consumer complaints regarding opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability in the digital lending and advance-services market, the FCCPC introduced the DEON Consumer Lending Regulations in July 2025. These regulations were designed to address the excesses of abusive service providers whose practices had led to persistent consumer harm and eroded confidence in the market.
The primary objective of these regulations is to foster a fairer and more transparent system by mandating proper registration, responsible lending conduct, clear disclosure of fees and terms, accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight.
Findings in the Telecom Sector
The FCCPC's investigations in the telecom sector revealed that some operators engaged in exclusionary third-party technical arrangements, which directly contravened the provisions of the Federal Competition and Consumer Protection Act, 2018. The regulations aim to unlock the market, allowing local participants to operate alongside foreign partners in alignment with free market principles.
These measures are intended to benefit Nigerians by reducing abusive practices, improving transparency, strengthening consumer choice, and encouraging responsible innovation by legitimate operators. The commission noted that some vested interests and their foreign collaborators oppose the creation of safe markets and fair competition, resorting to a campaign of disinformation.
Compliance Timeline and Operator Responsibilities
Operators are expected to structure their commercial relationships in compliance with Nigerian law. Commercial arrangements or outsourcing decisions do not exempt them from competition and consumer protection obligations. At the commencement of the regulatory framework in July 2025, affected operators were granted an initial 90-day compliance period to regularize their products, structures, and operations.
Unfortunately, this opportunity was not utilized within the prescribed timeframe, particularly in the telecom sector. The compliance window was subsequently extended until January 5, 2026, providing additional time for alignment with applicable requirements. Despite this further extension, the necessary compliance steps were still not completed by the relevant operators.
Current Situation and Clarification
Notwithstanding clear regulatory requirements, some operators chose to maintain the status quo by failing to register and regularize their services. In doing so, they continued operating monopolistic models that had long generated consumer complaints, including concerns related to transparency, deductions, charges, and accountability.
The FCCPC clarified that any temporary suspension, restriction, or operational change introduced by service providers should be understood as a business or compliance decision by those operators, not a ban imposed by the commission. It is inaccurate to attribute avoidable disruption to regulation when regulated entities had adequate notice and sufficient opportunity to comply.
The commission warned that attempts to misrepresent temporary service inconvenience as the result of lawful consumer regulation are mischievous. Nigerians deserve accurate information, not sensational claims. Consumers and the public are advised to disregard false and misleading narratives on this issue.
