The Federal Competition and Consumer Protection Commission (FCCPC) has officially debunked viral reports and social media claims suggesting it banned airtime borrowing and data advance services in Nigeria.
In a clarifying statement, the Commission emphasized that it has not issued any directive to prohibit these lawful value-added services. Instead, the FCCPC maintains that the reports are a misrepresentation of regulatory efforts aimed at protecting consumers from predatory practices.
According to FCCPC, the confusion stems from the introduction of the DEON Consumer Lending Regulations in July 2025. These regulations were designed to address a surge in consumer complaints regarding unexplained deductions, opaque charges, and aggressive recovery tactics.
By mandating registration and clear disclosure of terms, the FCCPC aims to foster a more transparent lending environment and curb the excesses of service providers that undermine market confidence.
Investigations by the Commission revealed that several telecom operators were utilizing exclusionary third-party arrangements that violated the Federal Competition and Consumer Protection Act of 2018.
These monopolistic models often favored foreign collaborators at the expense of local participants. The new regulatory framework seeks to break these monopolies, encouraging a free-market approach that balances foreign partnership with local involvement.
Despite the necessity of these changes, the FCCPC noted that relevant operators failed to regularize their services within the initial 90-day grace period. Even after a subsequent extension to January 5, 2026, many providers chose to maintain their existing operational models rather than complying with the new transparency and accountability standards. This lack of compliance has been the primary driver of recent service disruptions.
The Commission explicitly stated that any current restrictions or operational changes experienced by consumers are the result of business decisions made by the operators, not a ban from the regulator.
The FCCPC argued that it is “mischievous” to blame consumer protection laws for disruptions that could have been avoided had the regulated entities utilized the ample notice provided to align with Nigerian law.
The FCCPC warned that vested interests and their foreign collaborators are engaging in a disinformation campaign to oppose the creation of a safer market. The Commission urged Nigerians to disregard sensationalist claims, reaffirming its commitment to enforcing data protection safeguards and responsible lending conduct to ensure that innovation in the telecom sector does not come at the cost of consumer rights.
