Court warns FCCPC boss against contempt in airtime lending dispute

The legal dispute over the regulation of airtime lending services escalated on Wednesday as the Federal High Court in Lagos issued a contempt warning against the leadership of the Federal Competition and Consumer Protection Commission.

Justice Ambrose Lewis-Allagoa issued the warning through a Form 45 Notice of Consequences of Disobedience to Order of Court, cautioning the Executive Vice Chairman of the FCCPC, Mr Tunji Bello, that failure to comply with an existing court order could result in imprisonment for contempt.

The notice was issued in Suit No: FHC/L/CS/760/2026 between the Wireless Application Service Providers Association of Nigeria and the FCCPC.

The court stated in the notice: “Take notice that unless you obey the directions contained in the order of this Honourable Court, you will be guilty of contempt of court and will be liable to be committed to prison.”

The notice signals the commencement of recommittal proceedings over the alleged disobedience of the court’s order made on April 15, 2026.

It fixed May 15, 2026, for hearing in the substantive suit.

The earlier order had restrained the FCCPC from enforcing provisions of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 against members of WASPAN pending the determination of the suit.

At Wednesday’s proceedings, Lewis-Allagoa reaffirmed that the interim injunction remained in force.

The court held that “the interim order of this court subsists”, and directed that the substantive suit and the FCCPC’s preliminary objection be heard together on May 15, 2026.

At the previous hearing, the FCCPC had urged the court to discharge the restraining order.

However, the court declined the request and opted to preserve the status quo.

The judge noted that maintaining the interim injunction was necessary to safeguard the rights of providers of airtime lending, data advances and other mobile value-added services pending the determination of the substantive issues.

WASPAN is challenging the FCCPC’s authority to regulate telecom-based lending services, arguing that aspects of the DEON Regulations exceed the commission’s statutory powers.

In its filings, the association contended that the regulations encroach on the jurisdiction of the Nigerian Communications Commission.

The counsel to WASPAN argued that permitting enforcement of the disputed regulations before the determination of the suit would prejudice its members.

“The legality of these regulations is already before the court. To allow enforcement at this stage would amount to prejudging issues yet to be determined,” counsel submitted.

The association also opposed efforts by the FCCPC to set aside the interim order.

FCCPC, on its part, is contesting the suit and has raised a preliminary objection challenging the competence of the action.

A counsel representing the commission urged the court to vacate the restraining order, insisting that the commission was acting within its statutory consumer protection mandate.

Lewis-Allagoa, however, ruled that all pending applications, including the preliminary objection, would be taken alongside the substantive suit on the adjourned date.

The outcome of the case is expected to shape the future regulatory framework for digital credit services, particularly airtime lending and related mobile financial products used by millions of subscribers across Nigeria.