FCCPC denies banning airtime borrowing

The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed claims that it banned airtime borrowing and data advance services in Nigeria, describing the reports as false and misleading.

The commission clarified that it did not issue any directive stopping telecom operators from offering such services, stressing that Nigerians remain free to access lawful value-added telecom offerings.

The clarification follows widespread public concern triggered by viral social media posts and media reports suggesting that the FCCPC had shut down airtime and data credit services relied upon by millions of subscribers.

However, in a statement on Friday, the commission attributed recent disruptions in the services to non-compliance by some telecom operators with its Consumer Lending Regulations introduced in July 2025.

“The commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services,” the statement read.

The FCCPC explained that the regulatory framework was introduced following a surge in consumer complaints, including opaque charges, unexplained deductions, poor disclosure standards, and aggressive recovery practices in the digital lending space.

According to the commission, the regulations were designed to sanitise the market and ensure fairness by mandating transparency, proper registration, and accountability among service providers.

It added that the framework also seeks to strengthen consumer protection by ensuring clear disclosure of fees and terms, accessible complaint channels, and safeguards for user data.

The agency revealed that some telecom operators had also engaged in anti-competitive practices, including exclusionary arrangements with third-party providers, in violation of existing laws.

Despite granting operators an initial 90-day compliance window and extending the deadline to January 5, 2026, the commission said several companies failed to meet the requirements.

It noted that any temporary suspension of airtime borrowing or data advance services should be seen as a business decision by affected operators rather than a regulatory ban.

“Any temporary suspension, restriction, or operational change introduced by service providers should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC,” the statement added.

The commission also accused certain vested interests of spreading misinformation to undermine regulatory reforms aimed at protecting consumers and promoting fair competition.

Describing such narratives as “mischievous,” the FCCPC urged Nigerians to disregard unverified claims and rely on official sources of information.

Airtime borrowing and data advance services have become essential tools for telecom users, allowing subscribers to access credit for calls and internet services with repayment deducted upon recharge.

However, the sector has long faced criticism over hidden charges, automatic deductions, and unclear repayment terms.

The FCCPC maintained that its intervention aligns with broader efforts by the Federal Government to regulate digital lending and protect consumers in Nigeria’s growing telecom and fintech ecosystem.

The commission reaffirmed its commitment to ensuring transparency, accountability, and responsible innovation, noting that compliance with regulatory standards remains mandatory for all operators.