Fresh details have emerged on the legal battle surrounding the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital Economy and Online Consumer Lending (DEON) Regulations 2025, with the Wireless Application Service Providers Association of Nigeria (WASPAN) revealing that the court action was instituted to protect the interests of millions of Nigerian consumers and licensed local operators rather than frustrate reforms in the sector.

The disclosure comes amid growing public debate over the framework that triggered the suspension of airtime and data borrowing services by telecommunications operators, disrupting a credit ecosystem relied upon daily by millions of Nigerians.

In a statement issued on Saturday, June 6, 2026, WASPAN said contrary to suggestions circulating in some quarters, the suit before the Federal High Court in Lagos was not initiated by a foreign company seeking to block regulatory reforms.

Rather, it said the action was filed by an association representing Nigerian-registered value-added service providers holding valid Nigerian Communications Commission (NCC) licences.

“The characterisation of this litigation as an attempt by any single foreign entity to obstruct market reform is false,” the association stated, adding “The suit was filed to protect the rights of our members and the tens of millions of Nigerian consumers who depend on their services. Any suggestion to the contrary is a deliberate misrepresentation of the court record.”

WASPAN disclosed that it instituted Suit No. FHC/L/CS/760/2026 before the Federal High Court through senior advocate Kemi Pinheiro, SAN. According to the association, Justice Ambrose Lewis-Allagoa on April 15 granted interim orders restraining the FCCPC from enforcing disputed provisions of the DEON Regulations against its members, interfering with their operations, imposing sanctions for non-compliance or issuing directives under the framework pending further proceedings.

DEON is the framework introduced by the FCCPC to regulate digital lending and consumer protection practices.

The association further revealed concerns over reports that the FCCPC had increased the number of approved operators under the DEON framework from five to nine firms despite publicly announcing a suspension of DEON enforcement on May 22, 2026.

“The continued creation of commercial rights under a regulatory framework subject to active judicial restraint and administrative suspension raises serious questions about the Commission’s commitment to the undertakings it has made to the court and the Nigerian public,” WASPAN said.

The dispute has attracted significant attention because of its implications for millions of consumers and businesses. Airtime and data borrowing services, which function as a form of micro-credit for subscribers, were disrupted following the implementation of the DEON framework, leaving many users unable to access emergency airtime and data advances.

Industry stakeholders argue that the service has become an important financial tool for low-income earners, traders, artisans and small businesses who depend on short-term advances to remain connected and conduct daily transactions.

Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, recently estimated the value of the airtime credit ecosystem at between N300 billion and N400 billion annually.

According to him, “The airtime credit market serves as an informal credit mechanism for millions of Nigerians, particularly traders, artisans, and small-scale entrepreneurs who depend on short-term airtime advances to sustain daily economic activity in the absence of accessible formal credit. The market is estimated to be worth between N300 billion and N400 billion annually.”

Reacting to reports linking the Commission to claims about the litigation, the FCCPC distanced itself from the publication.

In a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission said: “The Commission wishes to state clearly that it is not aware of, and was not involved in, the claims attributed to it in the report absolutely.”

The FCCPC also maintained that it remains committed to observing the court’s directives while pursuing available legal options in the matter.

“The Commission remains committed to pursuing all lawful processes in respect of that matter while complying fully with the orders of the Court,” it stated.

As both sides await further judicial proceedings, the controversy continues to spotlight the delicate balance between consumer protection, regulatory oversight and the preservation of a digital credit ecosystem that industry operators say serves as a critical lifeline for millions of Nigerians