Court bars MTN, Airtel from suspending airtime lending services

THE Federal High Court in Abuja has restrained MTN Nigeria and Airtel Networks Limited from suspending or restricting services provided to Nairtime Nigeria Limited, pending the determination of a substantive suit challenging regulatory actions linked to digital lending.

The ruling, delivered on April 24, followed an ex parte application filed by Nairtime Holdings Limited and Nairtime Nigeria Limited, who alleged that the telecom operators were poised to disrupt their business operations.

In suit number FHC/ABJ/CS/779/2026, the plaintiffs argued that MTN and Airtel intended to suspend, discontinue, or interfere with their access to telecom platforms, including USSD channels, SMS, short codes, and billing systems, based on directives allegedly tied to the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025.

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They maintained that such actions would amount to unlawful interference with their contractual rights and operations, noting that they are licensed value-added service providers operating under approvals issued by the Nigerian Communications Commission (NCC).

Ruling on the motion, the court granted an interim injunction restraining the telecom firms from disrupting the plaintiffs’ services during the validity of their licence.

The court specifically ordered that the defendants, including their officers and agents, must not suspend, restrict, or interfere with Nairtime Nigeria Limited’s access to telecom infrastructure such as USSD, SMS, billing services, and other related platforms while the licence subsists.

It also held that telecom operators cannot sidestep agreed contractual notice periods or dispute-resolution procedures in a bid to comply with new regulatory directives, directing all parties to maintain the status quo pending the outcome of the case.

Airtime credit services, including MTN’s XtraTime and Airtel’s data credit offerings, were suspended in mid-April, with both companies citing compliance obligations under a regulatory framework introduced by the Federal Competition and Consumer Protection Commission.

The FCCPC introduced the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations in July 2025, extending licensing requirements to cover digital and non-traditional lending services such as airtime and data credit.

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However, industry stakeholders, including the Association of Licensed Telecoms Operators of Nigeria, argue that the commission exceeded its statutory mandate, maintaining that services delivered over NCC-licensed telecom infrastructure fall under the jurisdiction of the telecom regulator as defined by the Nigerian Communications Act 2003.

ALTON estimates the airtime lending market to be worth between N300 billion and N400 billion annually.

The FCCPC, however, has insisted it did not ban airtime credit services, stating that the suspensions were commercial decisions made by the telecom operators.