The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has expressed confidence that airtime lending services will soon return fully to about 40 million Nigerians who depend on the platform. This follows the decision by Airtel Nigeria to restore its airtime credit service and the Federal Competition and Consumer Protection Commission's (FCCPC) suspension of the controversial Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 (DEON Regulations).
Airtime Credit Relief Expected for 40 Million Nigerian Users
The optimism comes after weeks of disruption that left millions of subscribers, mostly prepaid and low-income users, without access to small airtime and data advances that have become an essential part of their daily communication and economic activities.
ALTON Chairman, Gbenga Adebayo, said the regulatory environment had become sufficiently clear for operators to resume services, commending Airtel for taking the lead in restoring access to subscribers.
Adebayo said: "The regulatory environment is now clear, and we are confident that full restoration is imminent. The courts have spoken, the FCCPC has acted responsibly, and two of the four major operators have already restored services. There is no ambiguity left, and we expect every operator to act with the urgency their subscribers deserve."
The development follows the FCCPC's decision to suspend implementation and enforcement of the DEON Regulations after being served with an ex-parte order of the Federal High Court in Lagos restraining the Commission from enforcing the framework.
In a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said: "As a law-abiding institution, the Commission, in deference and in obedience to the rule of law, hereby suspends the implementation and the enforcement of the DEON Regulations 2025."
The Commission, however, made it clear that it is not abandoning the regulations and intends to challenge both the court order and the suit itself. Ijagwu stated: "The Commission has also given its solicitors firm instructions to challenge the Order and the competence of the suit."
Background of the Regulatory Dispute
The regulatory dispute began after the FCCPC classified airtime credit services as consumer lending products and sought to bring them under a regulatory framework originally designed to address concerns in Nigeria's digital lending space. The move triggered concerns within the telecommunications industry and led to the suspension of airtime lending services by MTN Nigeria, Airtel Nigeria, Globacom and T2mobile in April.
Industry estimates place the value of Nigeria's airtime credit market at between N300 billion and N400 billion annually. According to Adebayo, the disruption underscored the strategic importance of airtime lending to millions of Nigerians.
He said: "What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy. Removing that infrastructure, even temporarily, had consequences that went far beyond the telecom sector."
Airtel Leads the Restoration
Airtel's decision to restore the service shortly after the regulatory environment eased has been viewed by industry observers as a significant signal of confidence. Globacom has also resumed airtime credit services, bringing relief to millions of subscribers.
Attention is now focused on MTN Nigeria, whose subscriber base of more than 95 million represents the largest segment of users affected by the suspension. Explaining the company's position, MTN Nigeria's Chief Corporate Services and Sustainability Officer, Tobechukwu Okigbo, said the operator still requires additional legal clarity before returning the service.
Okigbo said: "In terms of what needs to happen for us to resume airtime advance service, there are essentially two conditions. First, we would require either a court ruling that sets aside the regulations empowering the FCCPC to license, which has not happened, or a clear directive instructing us to reinstate the service."
ALTON Confident of Full Service Restoration
On its part, ALTON maintained that recent court decisions and the FCCPC's suspension of the regulations have significantly reduced uncertainty in the market and should support the full restoration of services across all networks. Adebayo also called for stronger collaboration between the FCCPC and the Nigerian Communications Commission (NCC) to prevent similar regulatory disputes in the future.
He said: "The lesson is that Nigeria's regulatory agencies need formal coordination protocols for services at the intersection of telecommunications and financial products. The FCCPC's consumer protection mandate and the NCC's telecom regulatory mandate can coexist without either displacing the other. We are ready to participate in that conversation and urge both agencies to begin it without delay."
For millions of Nigerians who rely on airtime advances to stay connected, the industry's expectation is that the recent regulatory developments will mark the beginning of a full return of services across the telecommunications sector.
