FCCPC denied reports of a ban on airtime lending and data advances

The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed reports of a ban on airtime lending and data advancement services in the country.

FCCPC said in a statement issued on Friday in Abuja, FCCPC Director Corporate Affairs, Mr. Ondaje Ijagwu, said no directive has been issued to prevent consumers from accessing legitimate telecommunication value added services.

He was reacting to several reports in several media outlets alleging that the commission had banned airtime lending and data advance services.

Ijagwu described the claim as untrue.

”Following numerous consumer complaints regarding unclear fees, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability in the digital lending and advanced servicing market segments, the FCCPC issued the DEON Consumer Lending Rule in July 2025.

“This regulation was introduced, among other things, to curb the excessive actions of abusive service providers whose practices consistently cause harm to consumers and undermine market confidence.

”The main goal is to encourage a fairer and more transparent system by requiring proper registration, responsible lending practices, and clear disclosure of fees and requirements.

“Others include accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight,” the spokesperson said.

He said in the telecom sector, the commission’s findings showed that some operators were involved in proprietary third-party technical arrangements and did not comply with the provisions of the Federal Competition and Consumer Protection Act, 2018.

Ijagwu said the regulation aims to open up the market to allow for local participants and foreign partners, in line with free market principles.

“These measures benefit Nigerian society by reducing abusive practices, increasing transparency, strengthening consumer choice, and encouraging responsible innovation by legitimate operators.

“We are aware that some interest groups and their foreign collaborators are against the creation of safe markets and fair competition, therefore we are carrying out a disinformation campaign.

”When this framework begins in July 2025, affected operators are given an initial 90-day compliance period to regulate their products, structures and operations.

“This opportunity was not utilized within the specified time period, especially in the telecommunications sector.

“The compliance window was subsequently extended to January 5, but despite the further extension, the necessary compliance steps have still not been completed by the operators concerned,” it added.