The Federal Competition and Consumer Protection Commission has dismissed widespread claims that it banned airtime borrowing and data advance services in Nigeria, describing the reports as false, misleading, and driven by vested interests resisting regulatory reforms.
The clarification follows a wave of public concern triggered by viral social media posts and some media reports suggesting that the Commission had shut down telecom-based credit services widely used by millions of Nigerians. In separate notices, Airtel and MTN Nigeria announced the temporary suspension of their airtime and data credit services, which previously allowed eligible prepaid customers to borrow airtime or data and repay on their next recharge.
In a statement issued on Friday by its Director of Corporate Affairs, Ondaje Ijagwu, the commission said no such directive was issued, stressing that consumers remain free to access lawful telecom value-added services. “The attention of the Federal Competition and Consumer Protection Commission has been drawn to a series of newspaper publications and a viral anonymous post on social media seeking to create the impression that the Commission cancelled, shut down, or banned airtime borrowing and data advance services in Nigeria.
Those claims are incorrect. “The Commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services,” the statement partly read. Rather than a regulatory ban, the FCCPC attributed recent disruptions in some of these services to the failure of certain operators to comply with its Consumer Lending Regulations introduced in July 2025.
According to the Commission, the regulations were developed following a surge in consumer complaints over exploitative practices in the digital lending and advance-services space. “Following a deluge of consumer complaints bordering on opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability in segments of the digital lending and advance-services market, the Federal Competition and Consumer Protection Commission issued the DEON Consumer Lending Regulations in July 2025.
“The Regulations were introduced, among other reasons, to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market,” it stated. The agency said the framework was designed to sanitise the market and protect consumers by enforcing transparency, accountability, and fair competition.
“The primary aim is to promote a fairer and more transparent system by mandating proper registration, responsible lending conduct, clear disclosure of fees and terms, accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight,” the FCCPC explained.
Providing a deeper insight into the telecom sector, the Commission revealed that some operators had been engaged in anti-competitive practices, including exclusionary arrangements with third-party service providers. “In the telecom sector, our findings indicated that some operators engaged in exclusionary third-party technical arrangements in clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018.
The Regulations sought to unlock the market to allow local participants alongside foreign partners, in line with free market principles,” it said. It added that the new regulations were also intended to open up the market to more participants, including local players, in line with free market principles.
Despite giving operators ample time to comply, the FCCPC said several companies failed to align with the new regulatory framework. Related News FG secures $83m to expand off-grid electricity access Korea, UNICEF unveil immunisation drive in Lagos Niger to establish carbon market office, targets green investment boost “These measures benefit Nigerians by reducing abusive practices, improving transparency, strengthening consumer choice, and encouraging responsible innovation by legitimate operators.