FCCPC denies banning airtime borrowing, blames operators for service disruptions

In Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has firmly refuted claims circulating about a ban on airtime borrowing and data advance services. These services, widely used by millions of Nigerians for essential communication needs, were reportedly suspended by major telecom operators, sparking public concern. However, the FCCPC has clarified that these reports are not only false but are being propagated by entities resistant to necessary regulatory changes.

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The attention of the Federal Competition and Consumer Protection Commission has been drawn to a series of newspaper publications and a viral anonymous post on social media seeking to create the impression that the Commission cancelled, shut down, or banned airtime borrowing and data advance services in Nigeria. Those claims are incorrect.

The commission attributes the recent disruptions to specific telecom operators failing to adhere to the Consumer Lending Regulations enacted in July 2025. These regulations were introduced in response to a surge in consumer complaints regarding exploitative practices within the digital lending and advance-services sector. Issues such as opaque charges, unexplained deductions, aggressive recovery tactics, and inadequate disclosure had become rampant, eroding consumer confidence.

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The Commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services.

The FCCPC's Consumer Lending Regulations are designed to sanitize the market and protect consumers by enforcing transparency, accountability, and fair competition. Key provisions include mandating proper registration for service providers, promoting responsible lending conduct, ensuring clear disclosure of fees and terms, establishing accessible consumer complaint channels, safeguarding data protection, and strengthening accountability for third-party partners.

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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 Federal Competition and Consumer Protection Commission issued the DEON Consumer Lending Regulations in July 2025.

By clarifying its stance and highlighting the regulatory framework in place, the FCCPC aims to reassure the public that lawful telecom value-added services remain accessible. The commission's proactive approach underscores its commitment to protecting consumers from predatory practices and fostering a more trustworthy and equitable market for digital financial services in Nigeria. The focus remains on ensuring that operators comply with regulations designed to prevent consumer harm and promote fair competition.

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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.