The Federal High Court in Lagos has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) has the authority to regulate airtime and data credit services but cannot issue licences to operators in the telecommunications sector, preserving the licensing powers of the Nigerian Communications Commission (NCC).

Delivering judgment on Monday in Suit No. FHC/L/CS/760/2026, Justice Ambrose Lewis-Allagoa held that the FCCPC’s Digital Economy and Online Non-Bank Consumer Lending (DEON) Consumer Lending Regulations 2025 fall within the commission’s statutory and constitutional powers.

The court, however, held that the FCCPC’s regulatory authority exists alongside that of sector regulators, stressing that “concurrency means coexistence, not displacement.”

Justice Lewis-Allagoa affirmed the FCCPC’s authority over competition and consumer protection matters under Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, while maintaining that the NCC retains exclusive responsibility for technical regulation, licensing and prudential oversight under the Nigerian Communications Act 2003.

The court further ruled that nothing in the DEON Consumer Lending Regulations establishes a telecommunications licensing framework, holding that the FCCPC lacks the statutory power to issue licences to telecommunications operators.

The judgment has immediate implications for the airtime and data credit market after the FCCPC approved five companies to operate under the DEON framework in April 2026. The ruling raises questions about the regulatory basis upon which those approvals were granted.

The decision is the first judicial interpretation of how regulatory oversight of airtime and data credit services should be shared between the FCCPC and the NCC in a market estimated to be worth between ₦300 billion and ₦400 billion annually and serving about 40 million Nigerians.

Reacting to the judgment, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, welcomed what he described as much-needed legal clarity.

“The court has done something important,” Adebayo said. “It has confirmed the FCCPC’s authority and, in the same breath, affirmed that the NCC’s role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court’s reasoning requires.”

He urged the FCCPC and the NCC to engage industry stakeholders before implementing future regulatory measures, noting that airtime and data credit services were suspended for about three months earlier this year following an enforcement directive before being restored.

“Forty million Nigerians depend on these services,” he said. “The court has made clear that both regulators have a role. The industry is asking them to define how that works before any action that could disrupt access again.”

Adebayo also drew attention to the directive issued by the Presidential Enabling Business Environment Council (PEBEC) on April 6, 2026, requiring federal agencies to conduct Regulatory Impact Assessments before introducing significant regulatory changes.

The judgment is expected to guide future regulatory coordination as digital financial and telecommunications products increasingly cut across the mandates of multiple government agencies.