Just weeks after Nigeria moved to open up its multibillion-naira airtime lending market amid concerns over the long-standing dominance of a South African technology firm, a Federal High Court has clarified which regulator is responsible for overseeing one of the country’s fastest-growing digital financial services.
In a landmark judgment delivered on Monday, the Federal High Court in Lagos ruled that while the Federal Competition and Consumer Protection Commission (FCCPC) has the power to regulate consumer protection and competition issues in the airtime lending market, only the Nigerian Communications Commission (NCC) has the legal authority to license telecommunications operators.
The decision is the first judicial clarification of how oversight of Nigeria’s airtime lending market,the largest in Africa by telecom subscribers, should be shared between the country’s competition regulator and telecom regulator.
The case stems from the FCCPC’s decision to extend its Digital Economy and Online Loans (DEON) Consumer Protection Regulations, originally introduced to curb abusive digital lending practices, to airtime and data credit services offered through licensed telecom operators.
Competition battle
