Subscribers Fear Fresh Disruption to Airtime Lending Services
President Muhammadu Buhari receives nomination forms from the National Consolidation Ambassadors’ Network (NCAN) during a presentation ceremony at the State House, Abuja Tuesday
Fresh concerns have emerged among telecom subscribers over the possibility of another disruption to airtime and data lending services as the legal battle between the Wireless Application Service Providers Association of Nigeria (WASPAN) and the Federal Competition and Consumer Protection Commission (FCCPC) shifts to the Court of Appeal.
The fears follow WASPAN’s warning that continued enforcement of the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), pending the determination of its appeal, could affect telecom-based credit services relied upon by millions of Nigerians.
An Abeokuta resident, Seun Sofoluwe, said another interruption would be difficult for many people who depend on airtime and data advances to stay connected.
“A lot of people depend on the services, and it will be very bad for them, especially those who are so reliant on it that they do debt-to-debt servicing,” he said.
Debt-to-debt servicing refers to the practice of repaying an outstanding airtime loan immediately to qualify for another advance, a development that reflects the extent to which some subscribers rely on the service for daily communication.
Sofoluwe’s concerns are similar to those expressed by Lagos-based employee, Farouk Rabiu, who recalled the challenges he faced during the previous disruption of airtime lending services.
“I was devastated because, after exhausting my data, I was hoping to borrow credit to access my bank account. Instead, it was a major disappointment,” Rabiu said after the services were restored.
Industry stakeholders have also warned that the service has become an important support system for millions of Nigerians.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the earlier disruption showed that airtime credit had grown beyond a simple telecommunications offering.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” Adebayo said.
WASPAN, which represents licensed value-added service providers, has asked the Court of Appeal to restrain the FCCPC from enforcing the DEON Regulations pending the hearing and determination of its appeal against the July 20 judgment of the Federal High Court in Lagos.
The association argued that immediate enforcement could expose operators to sanctions, create uncertainty for businesses and disrupt services such as airtime credit and data advances used by millions of subscribers.
The FCCPC, however, has defended the regulations, insisting that they were introduced to sanitise the digital lending sector, protect consumers, safeguard personal data and eliminate the activities of illegal digital lenders.
The Court of Appeal is expected to decide whether enforcement of the regulations should remain suspended while the appeal is being heard, a decision that could have significant implications for operators and the millions of Nigerians who rely on airtime and data lending services.
