This report clarifies the position of the Federal Competition and Consumer Protection Commission (FCCPC), concerning recent claims about the alleged ban on airtime borrowing and data advance services in Nigeria. It also outlines the regulatory framework introduced to address consumer protection concerns within the digital lending and telecom value-added services sector.
Background of the Issue
Recent newspaper publications and viral social media posts have suggested that the FCCPC banned or shut down airtime borrowing and data advance services in Nigeria. These claims have caused confusion among consumers and stakeholders.
However, the FCCPC has officially refuted these assertions, stating that:
- No such ban has been issued.
- Consumers are still permitted to access lawful telecom value-added services.
FCCPC Regulatory Intervention (July 2025)
In response to widespread consumer complaints, the FCCPC introduced the DEON Consumer Lending Regulations in July 2025.
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Key Consumer Complaints Identified
The regulations were prompted by recurring issues, including:
- Opaque and unclear charges
- Unexplained deductions
- Aggressive debt recovery practices
- Poor disclosure of terms and conditions
- Weak accountability mechanisms
These issues were particularly prevalent in digital lending and advance-service platforms.
Objectives of the DEON Regulations
The primary aim of the regulations is to create a fair, transparent, and accountable lending and service environment.
Key provisions include:
- Mandatory registration of service providers
- Responsible lending practices
- Clear disclosure of fees, charges, and terms
- Accessible consumer complaint and redress mechanisms
- Strong data protection safeguards
- Accountability for third-party partners
- Enhanced regulatory oversight
Telecom Sector Findings
FCCPC investigations revealed that some telecom operators:
- Engaged in exclusionary third-party arrangements
- Violated provisions of the Federal Competition and Consumer Protection Act (2018)
- Operated models that limited market access and competition
Market Liberalisation Efforts
The regulations aim to:
- Open the market to both local and foreign participants
- Promote fair competition
- Encourage innovation while protecting consumers
Compliance Timeline and Enforcement
Initial Compliance Period
- A 90-day compliance window was granted starting July 2025
Extension
- Deadline extended to 5 January 2026
Compliance Outcome
Despite these opportunities:
- Many operators failed to register or regularise their services
- Some continued operating non-compliant and monopolistic models
Clarification on Service Disruptions
The FCCPC emphasized that:
- Any suspension or restriction of airtime borrowing or data advance services is not due to a regulatory ban
- Such disruptions are the result of business or compliance decisions made by operators
It is therefore misleading to attribute these changes to FCCPC actions.
Misinformation and Public Advisory
The Commission noted the presence of:
- Disinformation campaigns
- Resistance from vested interests and foreign collaborators
Public Guidance
Consumers are advised to:
- Disregard false or misleading narratives
- Rely on official FCCPC communications
- Remain informed about their rights and available services
Benefits of the Regulatory Framework
The implemented regulations are expected to:
- Reduce exploitative practices
- Improve transparency in telecom and lending services
- Enhance consumer choice
- Strengthen accountability across the sector
- Promote responsible and sustainable innovation
Conclusion
The FCCPC has not banned airtime borrowing or data advance services in Nigeria. Instead, it has introduced regulatory measures aimed at protecting consumers and ensuring fair competition. Any service disruptions experienced are due to non-compliance by operators rather than regulatory prohibition.
Accurate information dissemination remains critical to maintaining public trust and ensuring that consumers fully understand their rights and the evolving regulatory landscape.
