The Federal High Court sitting 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 affecting digital lending operations.
In a ruling delivered on April 24, the court granted an interim injunction following an ex parte application filed by Nairtime Holdings Limited and Nairtime Nigeria Limited. The applicants alleged an imminent disruption of their business operations by the telecom operators.
In suit number FHC/ABJ/CS/779/2026, the plaintiffs contended that the defendants planned to suspend or interfere with their access to critical telecommunications infrastructure, including USSD channels, SMS, short codes, and billing systems. They argued that such actions were based on directives linked to the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
The plaintiffs maintained that any disruption would amount to unlawful interference with their contractual rights and ongoing business operations. They further noted that they operate as licensed value-added service providers under approvals issued by the Nigerian Communications Commission.
Granting the application, the court ordered that the telecom operators refrain from disrupting the plaintiffs’ services for the duration of their valid licence.
The court stated: “An order of interim injunction restraining the 1st and 2nd defendants, whether by themselves, their officers, agents, or privies, from suspending, restricting, discontinuing, or otherwise interfering with the plaintiffs’ access to their platforms, including USSD, SMS, short codes, and billing services, pending the determination of the substantive suit.”
The court also held that the telecom operators could not disregard agreed contractual notice periods and dispute-resolution mechanisms in an attempt to comply with new regulatory directives. It directed all parties to maintain the status quo until the substantive matter is resolved.
Airtime credit services, including MTN’s XtraTime and Airel’s data credit offerings, were suspended inmid-April, with both operators citing compliance obligations under a regulatory framework introduced by the Federal Competition and Consumer Protection Commission.
The FCCPC introduced the DEON Regulations in July 2025, extending licensing requirements to digital and non-traditional consumer lending services, including airtime and data credit products.
However, industry stakeholders have questioned the commission’s authority, arguing that services delivered via telecom infrastructure licensed by the NCC fall within the regulatory scope of the telecoms regulator under the Nigerian Communications Act 2003.
The Association of Licensed Telecoms Operators of Nigeria estimates the airtime lending market to be worth between ₦300 billion and ₦400 billion annually.
