The Federal High Court in Abuja has ordered MTN Nigeria and Airtel Networks Limited to maintain all services connected to Nairtime Nigeria Limited, pending the outcome of an ongoing legal battle over digital lending regulations.
The decision, issued on April 24, followed an urgent application by Nairtime Holdings Limited and Nairtime Nigeria Limited. The companies argued that their operations were at risk due to planned service restrictions by the telecom providers.
According to court documents, the dispute—filed under suit number FHC/ABJ/CS/779/2026—centres on attempts by MTN and Airtel to limit access to essential telecom infrastructure such as USSD codes, SMS, billing platforms, and short codes. These actions were reportedly linked to compliance with the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
The plaintiffs insisted that any disruption would violate their contractual rights, noting that they are duly licensed value-added service providers under the Nigerian Communications Commission (NCC).
In its ruling, the court granted an interim injunction, directing both telecom operators to refrain from suspending or interfering with Nairtime’s services. It also emphasized that existing contractual agreements, including notice periods and dispute resolution processes, must not be bypassed under the guise of new regulatory directives.
This legal tussle comes amid recent pauses in airtime and data credit services—such as MTN’s XtraTime and Airtel’s credit offerings—which were halted earlier in April. The telecom companies had cited the need to comply with new guidelines introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
The DEON regulations, rolled out in July 2025, expanded oversight to cover digital lending services, including airtime and data credit. However, industry players have raised concerns, arguing that such services fall under the authority of the NCC, not the FCCPC, as outlined in the Nigerian Communications Act of 2003.
Industry estimates from the Association of Licensed Telecoms Operators of Nigeria (ALTON) put the airtime lending market at between ₦300 billion and ₦400 billion annually.
Meanwhile, the FCCPC has clarified that it did not order the suspension of airtime credit services, stating that the decision to halt them was made independently by the telecom operators.
- MTN and Airtel group