Court orders MTN, Airtel to restore airtime credit services

The Nigerian telecommunications sector has seen a significant legal intervention that could restore crucial services for millions of subscribers. The Federal High Court's decision to restrain MTN and Airtel from suspending airtime and data credit services to Nairtime Nigeria Limited is a major development in the ongoing dispute over digital lending regulations.

Nairtime Nigeria Limited, a licensed Value Added Service provider, approached the court fearing a disruption to its business operations. The company argued that the telecom giants' planned actions, allegedly based on new digital lending regulations, would constitute an unlawful interference with their contractual rights. This legal battle highlights the complex interplay between evolving financial technology regulations and the established operational frameworks of the telecommunications industry.

The court's interim order emphasizes the importance of maintaining the status quo and respecting contractual notice periods and dispute-resolution mechanisms. This ruling is a significant win for Nairtime and potentially for other VAS providers who rely on such services. It underscores the judiciary's role in safeguarding business operations against regulatory overreach or abrupt policy changes, ensuring that established contractual agreements are upheld.

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of Interim Injunction restraining the 1st and 2nd Defendants/Respondents, whether by themselves, their officers, servents, agents,or privies from suspending, restricting, discontinuing,or otherwise interfering with the access of the 2nd Plaintiff to their platforms, channeis, short codes, SMS, USSD, billing services and other telecommunications- enabled service and operetions during the subsistence of the 2nd Plaintiff’s valid licence issued by the Nigerian Communications Commission under and by virtue of the Nigerian Communications Act on the basis of the DEON Regulations issued by the Federal Republic of Nigeria