FCCPC Denies Ban On Airtime Loans, Blames Cartel Disinformation

The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed widespread claims that it banned airtime borrowing and data advance services, describing the reports as false and driven by “desperate cartel” interests opposed to regulatory reforms.

In a statement issued by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission said it “has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services.”

The clarification follows what the Commission described as a surge in misleading media reports and viral social media posts suggesting that the regulator had shut down such services in Nigeria.

According to the FCCPC, the confusion stems from its enforcement of the DEON Consumer Lending Regulations introduced in July 2025, which were designed to address mounting consumer complaints in the digital lending and telecom value-added services space.

The Commission said the regulations were necessitated by “a deluge of consumer complaints bordering on opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability.”

It added that the framework was introduced “to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market.”

Under the regulations, operators are required to ensure proper registration, transparent disclosure of fees and terms, responsible lending practices, accessible complaint channels, and compliance with data protection standards.

The FCCPC further disclosed that its findings revealed that some telecom operators engaged in exclusionary third-party technical arrangements in violation of the Federal Competition and Consumer Protection Act 2018, limiting competition and market access.

“The Regulations sought to unlock the market to allow local participants alongside foreign partners, in line with free market principles,” the Commission said.

Providing a timeline of its enforcement actions, the FCCPC noted that operators were initially given a 90-day compliance window from July 2025, which was later extended to January 5, 2026. Despite this, several operators failed to regularise their services.

“Notwithstanding clear regulatory requirements, some operators chose to maintain the status quo by failing to register and regularise their services,” the Commission said, adding that such operators continued to run “monopolistic models” that triggered consumer complaints.

The agency stressed that any disruption to airtime lending or data advance services should be attributed to operators’ business or compliance decisions, not regulatory prohibition.

“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,” it said.

The Commission warned against attempts to misrepresent regulatory enforcement as consumer harm, insisting that “it is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply.”

Describing the misinformation campaign as “mischievous,” the FCCPC urged Nigerians to disregard false narratives and rely on verified information.

Reaffirming its mandate, the Commission said it remains committed to “protecting consumers, promoting fair competition, encouraging responsible innovation, ensuring transparent digital financial practices, and working constructively with sector regulators and service providers in the public interest.”