Regulatory Clash Threatening N400bn Telecom Credit Market, Operators Warn

A growing regulatory dispute in Nigeria’s telecommunications sector is threatening the stability of the country’s estimated N300 billion to N400 billion airtime credit market, with operators warning of risks to consumer welfare and investor confidence.

The Association of Licensed Telecoms Operators of Nigeria (ALTON) raised the alarm on Tuesday, saying the unresolved jurisdictional clash between regulatory agencies is already disrupting services that millions of Nigerians rely on for daily communication and informal micro-credit.

The airtime credit system, which allows subscribers to borrow airtime or data and repay it on subsequent recharges, has evolved into a widely used survival tool for traders, artisans, and low-income earners with limited access to formal banking credit.

ALTON chairman, Gbenga Adebayo, said the situation has moved beyond administrative disagreement and now poses a structural risk to the telecoms sector.

“What is happening in the airtime credit market is not simply a dispute between regulators. It is a test of whether the structures that underpin business confidence in this country are functioning as they should,” Adebayo said.

He warned that, despite subsisting court orders and valid operating licences, market disruptions have persisted, affecting both service delivery and consumer access.

“Court orders have been issued, businesses hold valid licences, and consumers are still being affected. We believe all parties have a responsibility to bring this to an orderly resolution,” he added.

The dispute stems from overlapping regulatory positions between the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC), both of which have issued frameworks affecting digital lending and airtime advance services.

Meanwhile, regulators maintain that reforms are aimed at consumer protection and improved transparency, but industry operators argue that the absence of harmonised guidelines has created uncertainty in a market now valued at hundreds of billions of naira annually.

The recent development has already triggered temporary suspensions and restructuring of airtime credit services across major mobile networks, further deepening concerns among users who depend on the service for day-to-day communication and business transactions.

The stakeholders warn that prolonged instability could weaken Nigeria’s investment climate, particularly in the digital economy, where regulatory predictability is considered critical for long-term capital inflows.

Telco stakeholders noted that the airtime credit ecosystem has become an important informal financial channel in Nigeria’s largely underbanked economy, making any disruption economically sensitive.

Hence, ALTON has called for urgent inter-agency coordination and for regulators to respect court directives, urging them to provide clarity on jurisdictional boundaries to restore stability to the sector. Even as the dispute continues, stakeholders say the outcome will serve as a key test of Nigeria’s regulatory coherence in managing the intersection between telecommunications and emerging digital financial services.