Federal High Court stops FCCPC from issuing licences
Federal High Court Confirms Regulatory Boundaries for FCCPC and NCC
LAGOS — The Federal High Court in Lagos ruled Monday that the Federal Competition and Consumer Protection Commission (FCCPC) lacks the authority to issue licenses, relegating it to a supervisory role over airtime and data credit services.
Justice Ambrose Lewis-Allagoa, presiding over Suit No. FHC/L/CS/760/2026, clarified that the FCCPC’s powers operate in conjunction with those of the Nigerian Communications Commission (NCC) rather than superseding them. He asserted that the DEON Consumer Lending Regulations 2025 fall within the FCCPC’s statutory and constitutional mandates.
The judge emphasized that the relationship between the FCCPC and sector-specific regulators is one of complementarity, stating, “Concurrency means coexistence, not displacement.” He confirmed the FCCPC’s precedence in matters of competition and consumer protection under Sections 104 and 105 of the Federal Competition and Consumer Protection Act of 2018, while also protecting the NCC’s technical and licensing responsibilities as defined by the Nigerian Communications Act of 2003.
The court determined that the FCCPC’s authority does not extend to the issuance of telecommunications licenses, clarifying that the DEON Regulations do not create a licensing framework for the telecommunications sector. Consequently, the NCC remains the exclusive authority responsible for licensing within this field.
In April 2026, the FCCPC allowed five companies to operate as airtime and data credit providers under the DEON framework. The court’s ruling now raises questions regarding the regulatory basis for these approvals.
This judgment is the first judicial clarification regarding the oversight of airtime and data credit services between the FCCPC and the NCC, as the market is valued between N300 billion and N400 billion annually and serves approximately 40 million Nigerians daily.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, welcomed the judgment, describing it as a significant step in clarifying the roles of the FCCPC and NCC. “The court has confirmed the FCCPC’s authority while safeguarding the NCC’s role,” he said. He urged both regulators to work together and engage with the telecommunications industry before enforcing any actions, recalling a recent suspension of airtime credit services that lasted three months following an enforcement directive.
Adebayo highlighted the impact of these services on millions of Nigerians, stating, “Forty million Nigerians depend on these services.” He called for the regulators to establish a framework for collaboration to avoid future disruptions.
Additionally, he reminded stakeholders that the Presidential Enabling Business Environment Council directive from April 6, 2026, mandates federal agencies to conduct a Regulatory Impact Assessment before implementing significant regulatory changes.
The court’s ruling is expected to serve as a precedent for how the FCCPC and sector-specific regulators navigate oversight as digital products increasingly blur traditional regulatory lines.
