Court Hears Case on Digital Lending Regulations Validity

The Federal High Court (Lagos Division), presided over by Justice Lewis-Allagoa, is addressing a dispute between the Wireless Application Service Providers Association of Nigeria Ltd/Gte (“the Plaintiff”) and the Federal Competition and Consumer Protection Commission (“the Defendant”). The Plaintiff, representing wireless application and value-added service providers, argues that the Defendant's Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (“DEON Regulations”), encroach on the regulatory authority of the Nigerian Communications Commission (“NCC”).

The DEON Regulations were enacted to combat issues in the digital consumer-lending market, such as hidden charges and misuse of personal data. The Plaintiff seeks a determination on the Commission’s powers under the Federal Competition and Consumer Protection Act (FCCPA), the validity of the DEON Regulations, and their impact on its members.

The Plaintiff has obtained interim orders to restrain the Defendant from enforcing the Regulations while the case is ongoing.