Di Federal High Court for Lagos don affirm say Federal Competition and Consumer Protection Commission (FCCPC) get power to regulate Nigeria digital consumer lending market, including airtime and data credit services. Dis ruling get big implications for di estimated ₦400 billion airtime lending industry for di kontri.
Justice Ambrose Lewis-Allagoa, for judgment wey im deliver on Monday, dismiss suit wey Wireless Application Service Providers Association of Nigeria (WASPAN) file to challenge di FCCPC Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations. Di court hold say FCCPC act within im constitutional and statutory powers wen im issue di regulations, and say di Commission authority over competition and consumer protection cover all sectors of di economy, including digital lending services.
Justice Lewis-Allagoa also hold say Federal Competition and Consumer Protection Act take precedence for competition and consumer protection matters, while sector regulators like Nigerian Communications Commission (NCC) retain responsibility for licensing, technical and prudential regulation. Di judge stress say di roles of FCCPC and NCC dey complementary, not conflicting, and dem describe di relationship as one of ‘coexistence, not displacement.’
Im add say di DEON Regulations na consumer protection measures and no usurp NCC licensing powers under di Nigerian Communications Act. Although di court decline FCCPC preliminary objection wey challenge im jurisdiction, e resolve all di substantive issues for favour of di Commission, and e refuse every declaration and relief wey WASPAN seek.
Di court also vacate di interim injunctions wey dem grant earlier for April, wey bin restrain enforcement of di regulations, holding say di basis for dose orders no dey again after dismissal of di substantive suit. Justice Lewis-Allagoa observe say a statutory regulator no suppose be prevented from carrying out im lawful duties.
Di suit follow FCCPC introduction of di DEON Regulations as part of efforts to strengthen oversight of Nigeria fast-growing digital lending sector amid rising concerns over consumer protection, unfair lending practices and anti-competitive conduct. Di ruling now clear di way for di Commission to enforce di regulations across di digital lending ecosystem, including providers of airtime and data credit services.
