Telecommunications Operators, represented by their umbrella organization, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have praised the Federal Competition and Consumer Protection Commission (FCCPC) for halting the enforcement of the Digital, Electronic, Online, or Non-traditional Consumer Lending (DEON) regulations.
ALTON characterized the suspension of enforcement as a vital measure aimed at reinstating trust in Nigeria’s regulatory framework.
This development coincides with the resumption of airtime and data credit services across various mobile networks in Nigeria.
Airtel Nigeria has completely restored airtime credit for its subscribers, while Glo has also reactivated its services in recent days.
The restoration occurred after several weeks of disruption that left around 40 million active users, predominantly prepaid subscribers from lower-income backgrounds, without access to the small airtime and data advances they depend on daily.
ALTON Chairman, Gbenga Adebayo, stated that the FCCPC’s decision exemplifies the type of institutional discipline that both the sector and the wider investment community have been seeking.
“We commend the FCCPC for making this decision in the best interests of Nigerian consumers and the telecommunications sector,” Adebayo remarked.
“The removal of that infrastructure, even for a short period, had repercussions that extended well beyond the telecommunications industry,” he added.
The airtime credit market, valued at approximately N300 to N400 billion annually, was effectively halted in early April when MTN, Airtel, Glo, and T2mobile ceased their offerings following an FCCPC enforcement directive that mandated immediate adherence to the DEON framework.
The FCCPC had categorized airtime credit as consumer lending, placing it under regulations initially intended to prevent exploitative practices by digital loan applications.
Airtel’s proactive approach to restoration has garnered significant attention within the telecommunications sector.
The operator reinstated services shortly after the regulatory hurdles were cleared, a move that several analysts have interpreted as a demonstration of confidence in the prevailing legal and commercial landscape.
Following suit within a few days was Nigeria’s largest local telecommunications company, Globacom.
At the time of this report, MTN Nigeria, the nation’s largest operator by subscriber count with over 95 million subscribers, had yet to restore its airtime credit services.
Sources within the industry who are knowledgeable about the situation indicate that there are no regulatory or legal barriers to restoration. Consequently, MTN’s subscribers, who constitute the largest group of airtime credit users in the country, are now the most significant cohort still awaiting the resumption of services.
