Nigerian consumer protection agency clarifies it hasn't prohibited temporary airtime loans, instead faults telecom providers for network outages

The Federal Competition and Consumer Protection Commission has disputed claims that it prohibited airtime borrowing and data advance services in Nigeria, labeling such reports as false and misleading, driven by vested interests opposed to regulatory reforms.

n

In response to public concern sparked by social media posts and media reports, the Commission clarified that it had not issued a directive banning telecom-based credit services widely used by millions of Nigerians.

n

Airtel and MTN Nigeria had announced the temporary suspension of their airtime and data credit services, which allowed eligible prepaid customers to borrow airtime or data and repay on their next recharge, in separate notices.

n

In a statement issued on Friday by its Director of Corporate Affairs, Ondaje Ijagwu, the commission emphasized that consumers remain free to access lawful telecom value-added services, as no such directive was issued.

n

The statement partly read, "The attention of the Federal Competition and Consumer Protection Commission has been drawn to a series of newspaper publications and a viral anonymous post on social media seeking to create the impression that the Commission cancelled, shut down, or banned airtime borrowing and data advance services in Nigeria, which is incorrect.

n

The Commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services," the statement partly read, clarifying the Commission's stance on the matter.

n

Rather than a regulatory ban, the FCCPC attributed recent disruptions in some of these services to the failure of certain operators to comply with its Consumer Lending Regulations introduced in July 2025.

n

According to the Commission, the regulations were developed following a surge in consumer complaints over exploitative practices in the digital lending and advance-services space, including opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability.

n

The FCCPC issued the DEON Consumer Lending Regulations in July 2025 to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market.

n

The primary aim of the regulations is to promote 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.

n

Providing a deeper insight into the telecom sector, the Commission revealed that some operators had been engaged in anti-competitive practices, including exclusionary arrangements with third-party service providers, in clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018.

n

The Regulations sought to unlock the market to allow local participants alongside foreign partners, in line with free market principles, and also intended to open up the market to more participants, including local players.

n

Despite giving operators ample time to comply, the FCCPC said several companies failed to align with the new regulatory framework, with affected operators granted an initial 90-day compliance period to regularise their products, structures, and operations.

n

The Commission extended the deadline to January 5, 2026, but compliance remained unsatisfactory, with the regulator stressing that any temporary suspension or restriction of services should be seen as a business decision by non-compliant operators rather than a government-imposed ban.

n

The regulator accused certain interest groups of deliberately spreading false information to undermine reforms, describing such narratives as "mischievous" and urging Nigerians to disregard sensational claims and rely on verified information.

n

Describing the situation, the FCCPC said it is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply, emphasizing that Nigerians deserve accurate information, not sensational claims.

n

The FCCPC is fully committed to protecting consumers, promoting fair competition, encouraging responsible innovation, ensuring transparent digital financial practices, and working constructively with sector regulators and service providers in the public interest.

n

Airtime borrowing and data advance services have become critical tools for millions of telecom subscribers in Nigeria, allowing users to access credit for calls and internet services with repayment deducted upon recharge, but the segment has long been plagued by complaints over hidden charges, automatic deductions, unclear repayment terms, and aggressive recovery mechanisms.

n

The FCCPC’s intervention through the Consumer Lending Regulations marked one of the most significant attempts to regulate digital micro-lending and telecom-based credit services in the country, aligning with broader efforts by the Federal Government to strengthen consumer protection, enhance transparency in digital financial services, and curb exploitative practices.

n

Friday’s clarification signals a push by the regulator to reclaim the narrative, reassure consumers, and shift responsibility to operators who have yet to fully comply with the law, with the Commission reaffirming its commitment to protecting consumers while fostering innovation and fair competition in the sector.

n

The Commission noted that regulatory compliance remains non-negotiable for all service providers operating in the Nigerian market, emphasizing the importance of adherence to the law.