Court Warns FCCPC Boss: Jail for Airtime Lending Defiance
Elijah TobsBy Elijah Tobs
Finance
May 6, 2026 • 8:34 PM
4m4 min read
Source: Pexels
The Core Insight
The Federal High Court in Lagos escalated a dispute over airtime lending regulation by issuing a contempt warning to FCCPC's Executive Vice Chairman Tunji Bello, threatening imprisonment for non-compliance with a prior injunction. WASPAN challenges FCCPC's authority under DEON Regulations 2025, arguing it oversteps into NCC territory. Hearing set for May 15, 2026, with broad implications for digital credit and mobile users.
As the founder and primary investigative voice at Kodawire, Elijah Tobs brings over 15 years of experience in dissecting complex geopolitical and financial systems. His work is centered on the ethical governance of emerging technologies, the shifting architectures of global finance, and the future of pedagogy in a digital-first world. A staunch advocate for high-fidelity journalism, he established Kodawire to be a sanctuary for deep-dive intelligence. Moving away from the ephemeral nature of modern headlines, Kodawire delivers permanent, verified insights that challenge the status quo and empower the global reader.
Federal High Court in Lagos Issues Contempt Warning to FCCPC in Airtime Lending Regulation Suit
Federal High Court in Lagos, site of the contempt proceedings. (Credit: Chidan DoingZ ✝️ via Pexels)
The legal battle over the regulation of airtime lending services intensified on Wednesday after the Federal High Court in Lagos issued a contempt warning against the leadership of the Federal Competition and Consumer Protection Commission (FCCPC), while fixing May 15, 2026, for hearing of the substantive suit.
Contempt Proceedings Initiated
Court's Form 45 contempt notice served to FCCPC. (Credit: KATRIN BOLOVTSOVA via Pexels)
In a Form 45 notice, formally titled Notice of Consequences of Disobedience to Order of Court, the court warned the FCCPC’s Executive Vice Chairman, Mr. Tunji Bello, of possible imprisonment if the commission fails to comply with its earlier order issued on April 15, 2026.
The notice, filed in Suit No: FHC/L/CS/760/2026 between the Wireless Application Service Providers Association of Nigeria (WASPAN) and the FCCPC, marks the commencement of contempt (recommittal) proceedings over the alleged breach of the court’s directive.
“Take notice that unless you obey the directions contained in the order of this Honourable Court… you will be guilty of contempt of court and liable to be committed to prison,” the notice stated.
Interim Injunction Remains in Force
Interim injunction upheld by Justice A. Lewis-Allagoa. (Credit: Tom Fisk via Pexels)
The April 15 order had restrained the FCCPC from enforcing provisions of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025 against WASPAN members, pending the determination of the suit.
Justice A. Lewis-Allagoa reaffirmed that the interim injunction remains valid and in force, and directed that both the substantive suit and the FCCPC’s preliminary objection be heard together on May 15, 2026.
Court Preserves Status Quo
At the previous hearing, the court declined the FCCPC’s application to set aside the restraining order, opting instead to preserve the status quo in order to protect the rights of providers of airtime lending, data advances, and other mobile value-added services.
WASPAN Challenges FCCPC's Authority
WASPAN is contesting the FCCPC’s authority to regulate telecom-based lending services, arguing that key provisions of the DEON Regulations exceed the commission’s statutory mandate and encroach on the regulatory jurisdiction of the Nigerian Communications Commission (NCC). This echoes concerns in the telecom sector, as seen in recent Senate scrutiny of telecom giants like MTN.
Implications for Digital Credit Services
Airtime lending services vital for millions of mobile users. (Credit: DΛVΞ GΛRCIΛ via Pexels)
The case is expected to have significant implications for the regulation of digital credit services, like those involving credit mechanisms, and for millions of mobile subscribers who rely on airtime lending across Nigeria.
The court issued a Form 45 notice warning FCCPC’s Executive Vice Chairman, Mr. Tunji Bello, of possible imprisonment for failing to comply with the April 15, 2026 order.
The April 15 order restrains the FCCPC from enforcing DEON Regulations 2025 against WASPAN members pending the suit's determination.
The substantive suit and FCCPC’s preliminary objection are fixed for hearing on May 15, 2026.
WASPAN contests FCCPC’s authority to regulate telecom-based lending services, claiming it exceeds statutory mandate and encroaches on NCC’s jurisdiction.
The court declined FCCPC’s application to set aside the restraining order to preserve the status quo and protect providers' rights.
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Editorial Team • Question of the Day
"Should FCCPC regulate airtime lending or leave it to NCC?"
