Nigeria’s estimated N400 billion annual airtime and data credit market could face higher operating and consumer costs as the regulatory dispute between the Federal Competition and Consumer Protection Commission (FCCPC) and telecommunications stakeholders enters a new phase following the Federal High Court judgment and an appeal by the Wireless Application Service Providers Association of Nigeria (WASPAN).
The market, which serves about 40 million Nigerians, has become the latest flashpoint in the country’s increasingly complex digital economy, with operators warning that overlapping regulatory requirements could increase the cost of providing services and ultimately be passed on to consumers.
The Federal High Court in Lagos, in its July 20 judgment, affirmed the FCCPC’s authority to regulate aspects of airtime and data credit services while preserving the Nigerian Communications Commission’s role as the primary telecommunications regulator.
The judgment, however, has been appealed, leaving the sector awaiting further judicial clarification.
The economic concern is that additional compliance requirements could create a second layer of regulatory costs for businesses already licensed by their primary sector regulator.
