The Federal High Court in Lagos has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) has no authority to issue telecommunications licences, clarifying that its role is limited to oversight of airtime and data credit services alongside the Nigerian Communications Commission (NCC).
Delivering judgment in Suit No. FHC/L/CS/760/2026 on Monday, Justice Ambrose Lewis-Allagoa held that the FCCPC’s DEON Consumer Lending Regulations 2025 fall within the commission’s statutory and constitutional powers. He, however, stressed that the FCCPC’s responsibilities complement, rather than replace, those of the NCC.
The judge explained that the relationship between both regulators is based on “concurrency,” meaning they coexist within their respective mandates. While the FCCPC retains authority over competition and consumer protection under the Federal Competition and Consumer Protection Act 2018, the NCC remains solely responsible for telecommunications licensing, technical regulation and prudential oversight under the Nigerian Communications Act 2003.
The court further ruled that the DEON Regulations do not create a telecommunications licensing framework, reaffirming that only the NCC has the legal authority to license operators in the sector.
The judgment comes months after the FCCPC approved five companies in April 2026 to provide airtime and data credit services under the DEON framework, raising questions about the regulatory basis for those approvals.
The ruling is the first judicial clarification on the respective roles of the FCCPC and NCC in regulating airtime and data credit services, a market estimated to be worth between ₦300 billion and ₦400 billion annually and used daily by about 40 million Nigerians.
Reacting to the decision, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, welcomed the judgment, saying it affirmed the mandates of both regulators while preserving the NCC’s statutory role.
Adebayo urged the FCCPC and NCC to develop a clear coordination framework and engage industry stakeholders before taking enforcement actions. He noted that airtime credit services were suspended for three months earlier this year following regulatory action before being restored.
He also reminded both agencies of the Presidential Enabling Business Environment Council’s April 6, 2026 directive requiring federal regulators to conduct a Regulatory Impact Assessment before implementing significant regulatory changes. The judgment is expected to serve as a key precedent for regulatory oversight as digital financial products continue to cut across multiple sectors.
