Millions of Nigerian telecom subscribers may soon regain access to airtime and data credit services following decisive court interventions that have temporarily halted enforcement actions linked to digital lending regulations.
In a significant ruling, the Federal High Court sitting in Abuja on April 24, 2026, granted an interim injunction restraining MTN Nigeria Communications Plc and Airtel Networks Limited from suspending or restricting services provided to Nairtime Nigeria Limited. The order will remain in effect pending the outcome of a substantive lawsuit challenging regulatory actions affecting digital lending operations.
The case, filed by Nairtime Holdings Limited and Nairtime Nigeria Limited under Suit No. FHC/ABJ/CS/779/2026, was triggered by what the plaintiffs described as an imminent threat to their operations. They alleged that telecom operators planned to cut off access to critical service infrastructure, including USSD channels, SMS platforms, short codes, and billing systems—core components required for delivering airtime advance services.
The plaintiffs argued that such actions would amount to unlawful interference with their contractual rights, noting that they are licensed Value Added Service providers operating under approvals issued by the Nigerian Communications Commission. They further maintained that they had fulfilled all contractual obligations and had not received any notice of breach from the telecom operators.
In its ruling, the court directed all parties to maintain the status quo, emphasising that telecom firms cannot disregard existing contractual agreements or dispute resolution mechanisms in an attempt to comply with new regulatory directives. The order specifically protects Nairtime Nigeria Limited’s access to telecom platforms throughout the duration of its valid operating licence.
Parallel Ruling in Lagos
In a related development, the Lagos division of the Federal High Court delivered a similar ruling on April 15, 2026, restraining the Federal Competition and Consumer Protection Commission from enforcing provisions of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025.
The suit, instituted by the Wireless Application Service Providers Association of Nigeria, challenged the scope and legality of the regulations. Justice Ambrose Lewis-Allagoa ruled that the commission must refrain from implementing the contested provisions or taking enforcement actions that could disrupt service providers’ operations pending the hearing of an interlocutory injunction.
Service Disruption and Industry Impact
The legal tussle follows the sudden suspension of airtime credit services in mid-April by telecom operators, who cited compliance requirements under the new regulatory framework. Services affected include MTN XtraTime and Airtel’s data credit offerings—widely used by millions of Nigerians as a form of short-term microcredit.
The suspension, which occurred without prior notice or a clear restoration timeline, triggered widespread disruption, particularly among low-income earners and small business operators who rely on borrowed airtime to sustain communication and daily transactions.
Industry analysts estimate that airtime lending in Nigeria is valued between ₦500 billion and ₦1.2 trillion annually, underscoring its critical role in advancing financial inclusion and supporting informal sector activities.
Regulatory Tensions Intensify
The disputed regulations, introduced in July 2025 by the Federal Competition and Consumer Protection Commission, sought to expand oversight to digital and non-traditional lending platforms, including airtime and data credit services. Although compliance deadlines were extended multiple times, enforcement actions commenced in April 2026, triggering the current standoff.
Stakeholders within the telecom and fintech ecosystem have argued that the commission overstepped its statutory authority, insisting that services delivered via telecom infrastructure fall under the jurisdiction of the Nigerian Communications Commission, as provided for in the Nigerian Communications Act 2003.
While the commission has denied imposing a ban on airtime credit services—maintaining that telecom operators independently chose to suspend the offerings—industry groups have called for regulatory clarity and adherence to court orders.
What Lies Ahead
Both cases have been adjourned for interlocutory hearings, with operators, regulators, and service providers expected to engage further in resolving the regulatory impasse.
Observers say the outcome of the cases could redefine the boundaries of regulatory authority in Nigeria’s rapidly evolving digital lending space and determine the future of airtime-based microcredit services relied upon by millions.
Federal High Court orders MTN and Airtel to restore airtime credit services, halting enforcement of digital lending regulations amid a growing regulatory dispute affecting millions of Nigerian subscribers.
Court restrains MTN and Airtel from suspending airtime credit services as regulatory tensions over digital lending rules escalate, offering relief to millions of Nigerian telecom users.
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