Court Upholds FCCPC's Authority Over Digital Lending

On July 20, 2026, Justice Lewis Alagoa delivered a judgment in the case Waspan v. FCCPC (Suit No.

FHC/L/CS/760/2026), affirming the constitutional validity of the Federal Competition and Consumer Protection Commission's (FCCPC) authority to regulate Nigeria's digital consumer lending sector. The court ruled that the FCCPC's regulatory powers coexist with, rather than replace, the statutory powers of the Nigerian Communications Commission (NCC).

The judgment upheld four interim injunctions restraining the FCCPC from enforcing its regulations against five firms approved to provide airtime and data credit services. The court indicated that these companies require separate authorization from the NCC to operate legally within telecommunications networks.

The ruling has significant implications for approximately 40 million users affected by the suspension of airtime and data credit services, prompting the FCCPC to seek alternative providers. ALTON Chairman Gbenga Adebayo expressed concerns regarding the regulatory framework's uncertainty, which could undermine investor confidence in Nigeria's telecommunications sector.