…As WASPAN Seeks Appeal

The Wireless Application Service Providers Association of Nigeria (WASPAN) has asked the Court of Appeal to restrain the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), warning that immediate implementation could disrupt telecom-based credit services and expose operators to heavy regulatory sanctions.

The application follows the July 20, 2026 judgment of the Federal High Court in Lagos, which dismissed WASPAN’s suit challenging the FCCPC’s authority to regulate telecom-based digital lending services.

In a Notice of Appeal and a Motion on Notice for an Injunction Pending Appeal, the association urged the appellate court to preserve the status quo while it challenges the judgment delivered by Justice Ambrose Lewis-Allagoa.

The appeal came shortly after the FCCPC announced the resumption of full enforcement of the DEON Regulations, stating that the legal impediment which had necessitated a temporary suspension since April 2026 no longer existed following the court’s decision.

Supporting the application with a 14-paragraph affidavit, WASPAN Chairman, Mr. Ayo Stuffman, argued that immediate enforcement would expose members of the association to severe financial penalties and disrupt lawful business operations.

“It is feared that if the Plaintiff’s members do not comply with DEON Consumer Lending Regulations 2025 of the Defendant, the Defendant may proceed to take steps that are adverse and detrimental to the existence and business of the Plaintiff’s members which steps may have grave consequences,” Stuffman stated.

He added that unless restrained by the Court of Appeal, members would continue to face “regulatory uncertainty, exposure to sanctions, and disruption of their lawful business activities.”

According to the affidavit, the FCCPC’s announcement that the regulations had become fully operational immediately after the Federal High Court judgment heightened concerns across the telecom value-added services industry.

Under the regulations, corporate entities may face fines of up to ₦100 million or one per cent of annual turnover for non-compliance, while company directors could also be subjected to regulatory sanctions.

At the heart of the dispute is whether the FCCPC can regulate telecom-based lending products already supervised Nigerian Communications Commission (NCC).

WASPAN maintained that its members are licensed under the Nigerian Communications Act, 2003, and argued that requiring additional approvals, registrations and oversight from the FCCPC amounts to overlapping regulation.

“The Plaintiff’s right of appeal will be adversely affected by the implementation and enforcement of the Regulations in that the members of the Plaintiff are constrained and overridden with respect to their operational freedom under their Primary regulator, the Nigerian Communications Commission, with the imposition of Defendant’s additional control, partnership approval, service agreement regulations,” Stuffman said.

The association further argued that enforcement of the regulations before the appeal is determined would render the appellate process ineffective.

Quoting legal advice received from its counsel, Chukwudi Enebeli, SAN, Stuffman said any enforcement action before the appeal is heard would render the substantive issues before the appellate court nugatory and create a fait accompli.

Among the grounds of appeal, WASPAN contended that the trial court erred in holding that Section 2(1) of the Federal Competition and Consumer Protection Commission Act confers an economy-wide regulatory mandate on the FCCPC without recognising the statutory authority vested in sector regulators such as the NCC.

Responding, the FCCPC defended its actions, maintaining that the DEON Regulations were introduced to address consumer protection concerns, including predatory digital lending practices, unlawful debt recovery methods and data privacy abuses.

The Commission’s Director of Corporate Affairs, Mr. Ondaje Ijagwu, said the regulator had complied fully with previous court orders and would continue to enforce the regulations in line with the law following the Federal High Court’s judgment.

“The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance,” Ijagwu said, adding” Now that the Court has affirmed the validity of the DEON Regulations, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.”

The Court of Appeal is expected to determine whether enforcement of the regulations should remain suspended pending the hearing and determination of WASPAN’s substantive appeal, a decision being closely watched by stakeholders across Nigeria’s telecommunications and fintech sectors.