Court Backs FCCPC Authority Over Nigeria's Digital Lending Sector

Nigeria's Federal High Court in Lagos has affirmed the Federal Competition and Consumer Protection Commission's authority to oversee the country's digital lending market, clearing the way for the FCCPC to enforce consumer protection rules in a sector estimated at N400 billion. Justice Ambrose Lewis Allagoa delivered the judgment on Monday, dismissing a lawsuit filed by the Wireless Application Service Providers Association (WASPAN) that had challenged the FCCPC's regulatory powers.

The court ruled that the FCCPC possesses statutory authority under the Federal Competition and Consumer Protection Act 2018 to regulate digital, electronic, and non-traditional consumer lending arrangements. The judgment specifically upheld the validity of lending regulations the FCCPC had drafted, removing temporary legal obstacles that had blocked their enforcement since April 2026.

The decision confirms the FCCPC's jurisdiction extends to airtime and data credit services provided by multiple firms. The ruling delineates regulatory responsibilities between two agencies: the FCCPC maintains consumer protection oversight of digital lending platforms, while the Nigerian Communications Commission retains its exclusive authority over telecommunications licensing and technical matters.

Telecommunications operators have called on both bodies to develop a unified framework for airtime and data credit services, signaling industry uncertainty about how overlapping jurisdictions will function in practice. With the legal challenge dismissed entirely and the court upholding the validity of the regulations, the FCCPC has resumed implementation and enforcement of its digital lending rules.

The judgment removes barriers that had previously suspended commission action against digital lending operators, restoring the FCCPC's capacity to police consumer protections across Nigeria's expanding online lending ecosystem.