The Association of Licensed Telecoms Operators of Nigeria (ALTON) has called for the urgent resolution of the regulatory dispute affecting Nigeria’s airtime credit market, warning that the ongoing disruption, despite existing court orders, poses risks to consumer welfare, investor confidence, and regulatory stability in the telecoms sector.
This was made known by the association’s Chairman, Gbenga Adebayo, noting that the current situation requires urgent attention from all parties.
He said the situation has moved beyond a routine regulatory disagreement and now reflects deeper concerns about institutional coordination and respect for judicial directives.
According to him, all stakeholders, including regulators, telecom operators, and the Federal Government, must work together to restore order and clarity to the market.
What the association is saying
Adebayo stressed that the dispute has broader implications for Nigeria’s business environment and the credibility of its regulatory framework.
- “What is happening in the airtime credit market is not simply a dispute between regulators. It is a test of whether the structures that underpin business confidence in this country are functioning as they should. Court orders have been issued, businesses hold valid licences, and consumers are still being affected. We believe all parties have a responsibility to bring this to an orderly resolution,” Adebayo said.
He noted that the association’s concern extends beyond its members’ commercial interests.
- ‘’The airtime credit market serves as an informal credit mechanism for millions of Nigerians, particularly traders, artisans, and small-scale entrepreneurs who depend on short-term airtime advances to sustain daily economic activity in the absence of accessible formal credit. The market is estimated to be worth between N300 billion and N400 billion annually,’’ he added.
He said court orders restraining interference in the operations of licensed Value Added Service (VAS) providers remain in force
- He noted that licensed operators, including Nairtime Nigeria Limited and members of the Wireless Application Service Providers Association of Nigeria (WASPA), are still affected by the suspension
- He warned that continued disruption despite judicial rulings raises concerns about regulatory coordination
- He described the situation as a “test of business confidence structures” in Nigeria
Interim injunctions issued by the Federal High Courts in Lagos and Abuja had previously restrained interference in the operations of licensed VAS providers. However, ALTON says the continued market uncertainty suggests a breakdown in alignment between regulatory actions and court directives.
Get up to speed
At the heart of the dispute is a jurisdictional conflict between the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC), particularly over oversight of airtime credit services and Value Added Service providers.
- ALTON maintains that the NCC, under the Nigerian Communications Act, has clear statutory authority over telecoms operations, including VAS providers. The association argues that overlapping regulatory claims have created uncertainty that is now disrupting commercial activity in the sector.
- The association also disclosed that it had raised concerns with the NCC as far back as August 2025, warning that regulatory inconsistencies, particularly those arising from FCCPC regulations and existing inter-agency agreements, could destabilise the market if not addressed.
The airtime credit ecosystem, estimated to be worth between N300 billion and N400 billion annually, plays a key role in supporting informal economic activity across Nigeria. It allows millions of small traders, artisans, and low-income earners to access short-term credit for communication needs in the absence of formal financing options.
What you should know
Meanwhile, in a related development, the FCCPC had earlier denied cancelling or banning airtime borrowing and data advance services, instead placing the temporary suspension blame on service providers.
The response followed announcements by Airtel Nigeria and MTN Nigeria Communications Plc of the temporary suspension of their airtime and data credit services, citing new regulatory requirements for digital lending.
The FCCPC, in a statement by its Director of Corporate Affairs, Ondaje Ijagwu, said operators are expected to structure their commercial relationships in a manner consistent with Nigerian law.
The Commission explained that at the commencement of the regulatory framework in July 2025, affected operators were granted an initial 90-day compliance period to regularise their products, structures, and operations.
However, the Commission noted that this opportunity was not utilised within the prescribed timeframe, particularly in the telecom sector.
It added that, notwithstanding clear regulatory requirements and a grace period, some operators allegedly chose to maintain the status quo by failing to register and regularise their services.
