The Federal Competition and Consumer Protection Commission (FCCPC) has said that it has not prohibited airtime borrowing or data advance services, adding that no directive was issued preventing consumers from accessing lawful telecom value-added services.

Following a deluge of consumer complaints bordering on opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability in segments of the digital lending and advance-services market, the FCCPC said it issued the DEON Consumer Lending Regulations in July 2025.

It said the Regulations were introduced, among other reasons, to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market.

“The primary aim 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,” the commission said in a statement on Friday.

The FCCPC said its findings in the telecom sector indicated that some operators engaged in exclusionary third-party technical arrangements in clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018. The Regulations sought to unlock the market to allow local participants alongside foreign partners, in line with free market principles.

It said these measures benefit Nigerians by reducing abusive practices, improving transparency, strengthening consumer choice, and encouraging responsible innovation by legitimate operators.

The FCCPC said it is aware that some vested interests and their foreign collaborators are opposed to the creation of safe markets and fair competition, therefore resorting to a campaign of disinformation.

“Operators are expected to structure their commercial relationships in a manner consistent with Nigerian law. Commercial arrangements or outsourcing decisions do not displace competition and consumer protection obligations.

“At the commencement of the framework in July 2025, affected operators were granted an initial 90-day compliance period to regularise their products, structures, and operations,” the commission said.

The FCCPC lamented that the opportunity was not utilised within the prescribed timeframe, specifically in the telecom sector. The compliance window was subsequently extended until January 5, 2026, providing additional time for alignment with applicable requirements. Despite that further extension, the necessary compliance steps were still not completed by the relevant operators, the commission said.

“Notwithstanding clear regulatory requirements, some operators chose to maintain the status quo by failing to register and regularise their services. In doing so, they continued operating monopolistic models that had long generated consumer complaints, including concerns relating to transparency, deductions, charges, and accountability.

“Any temporary suspension, restriction, or operational change introduced by service providers should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC,” the commission said.

The FCCPC said it is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply.

The commission warned that attempts to misrepresent temporary service inconvenience as the result of lawful consumer regulation are mischievous, adding that Nigerians deserve accurate information, not sensational claims.

Consumers and members of the public are advised to disregard false and misleading narratives on this issue.