Court Upholds FCCPC's Powers to Regulate Nigeria's N400 Billion Digital Lending Market - Newstrends
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Court Upholds FCCPC’s Powers to Regulate Nigeria’s N400 Billion Digital Lending Market

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Court Upholds FCCPC's Powers to Regulate Nigeria's N400 Billion Digital Lending Market

Court Upholds FCCPC’s Powers to Regulate Nigeria’s N400 Billion Digital Lending Market

  • Federal High Court dismisses WASPAN suit, affirms FCCPC’s authority to regulate Nigeria’s digital lending industry

LAGOS, Nigeria – The Federal Competition and Consumer Protection Commission (FCCPC) has resumed full implementation and enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations), following a landmark judgment by the Federal High Court in Lagos.

Justice Ambrose Lewis-Allagoa dismissed in its entirety a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which had challenged the Commission’s authority to issue and enforce the regulations. The court upheld the validity of the DEON Regulations, ruling that they were made pursuant to the FCCPC‘s statutory and constitutional powers and are therefore within the Commission’s legal authority.

The judgment, delivered in Suit No. FHC/L/CS/760/2026, also discharged the interim ex parte order issued on April 15, 2026, which had temporarily restrained the Commission from implementing and enforcing the regulations. The court observed that a statutory regulator should not ordinarily be restrained from performing its lawful statutory duties.

With the legal impediment removed, the FCCPC confirmed that the DEON Regulations are once again fully operational and enforceable, and implementation has resumed with immediate effect. The Commission had suspended implementation immediately after being served with the court’s interim order in April, in compliance with the court’s directive and in keeping with its commitment to the rule of law.

Justice Lewis-Allagoa held that the FCCPC’s regulatory jurisdiction derives from Sections 16(2)(c), 16(3) and 17(2)(d) of the 1999 Constitution (as amended), as well as Item 60(a) of the Exclusive Legislative List, which confers economy-wide authority over competition and consumer protection matters. The court further ruled that Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA), 2018, give the FCCPC precedence in competition and consumer protection issues, while sector regulators retain their technical, licensing, and prudential responsibilities. According to the court, the relationship between the FCCPC and sector regulators is complementary rather than conflicting. “Concurrency means coexistence, not displacement,” the judge held, adding that the DEON Regulations do not usurp the statutory powers of the Nigerian Communications Commission (NCC) . The court also rejected WASPAN’s contention that the regulations conflicted with the Nigerian Communications Act, 2003, holding that both statutes can be harmoniously construed. It ruled that where competition and consumer protection issues arise, the FCCPA provides the applicable legal framework.

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WASPAN, represented by Senior Advocate of Nigeria Kemi Pinheiro, had argued that airtime lending is a telecommunications value-added service regulated exclusively by the NCC under the Nigerian Communications Act, and that subjecting operators to the FCCPC’s regulatory regime would create dual regulation, increase compliance costs, and undermine the sustainability of the service. The FCCPC, however, maintained that deferred-payment airtime and data services constitute digital consumer lending and therefore fall within its statutory mandate to regulate consumer credit markets and protect consumers.

The judgment is expected to have significant implications for Nigeria’s estimated N400 billion airtime credit industry, where subscribers receive airtime or data in advance and repay later with an associated service charge. Following the ruling, telecommunications operators, including MTN Nigeria, Airtel Nigeria and Globacom, are expected to resume suspension of airtime and data lending services after previously restoring them following the April interim court order. The service, valued at between N300 billion and N400 billion annually, allows subscribers to borrow airtime and data during emergencies and has become particularly important for traders, artisans, small business owners and other low-income earners who depend on uninterrupted mobile connectivity. Industry analysts estimate that approximately 40 million people use airtime credit services regularly, with the vast majority at the base of the economy.

Reacting to the judgment, the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, said the Commission welcomed the court’s decision, describing it as a reaffirmation of its statutory mandate. “The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive. Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law,” he said. Ijagwu said the DEON Regulations are designed to promote responsible lending, strengthen regulatory accountability, curb unfair and exploitative practices, and enhance consumer protection in Nigeria’s digital lending market. “Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike,” he added.

The FCCPC introduced the DEON Regulations on July 21, 2025, requiring all digital lenders, including loan apps and online credit providers, to register with the Commission and meet clear standards on consumer protection, data privacy, ethical loan terms, and responsible lending. The framework expanded regulatory oversight beyond app-based lenders to include digital and non-traditional consumer lending platforms, strengthening the FCCPC’s authority to monitor the industry and enforce compliance. The regulations target all digital, online, or non-traditional consumer loans, including unsecured cash loans, airtime credit, data loans, cashback schemes, and barter schemes where a verifiable monetary value is exchanged. They also apply to fintechs, mobile money operators, agritech platforms, and cross-state vendors, even if they hold other state or federal licenses. Operators were given a compliance window until January 5, 2026, with sanctions for non-compliance that include fines of up to N100 million or 1% of turnover, and possible disqualification of directors, as well as other enforcement actions such as suspension or revocation of approval.

The FCCPC’s regulatory crackdown has yielded significant results. The Commission has previously delisted several loan applications from digital platforms and sanctioned operators accused of violating consumer rights. Nigeria has experienced rapid growth in digital lending over the past decade, driven by smartphone adoption, limited access to traditional bank credit and increasing demand for instant consumer loans. However, the sector has also attracted widespread criticism over practices including public shaming of borrowers, unauthorised access to phone contacts, hidden charges and aggressive debt collection methods. The judgment effectively restores regulatory certainty for licensed digital lending operators while increasing compliance pressure on firms that previously operated with limited oversight. The ruling is expected to accelerate the professionalisation of Nigeria’s digital lending market by discouraging rogue operators while creating a more predictable regulatory environment for responsible fintech companies. For investors, the ruling provides greater regulatory clarity over one of Africa’s fastest-growing fintech segments. For consumers, it revives protections that had been temporarily suspended while the legal dispute was before the court.

Court Upholds FCCPC’s Powers to Regulate Nigeria’s N400 Billion Digital Lending Market

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NSCDC busts alleged fake university in Lagos, rescues 106 students

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July 21, 2026

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NSCDC busts alleged fake university in Lagos, rescues 106 students

NSCDC busts alleged fake university in Lagos, rescues 106 students

The Nigeria Security and Civil Defence Corps (NSCDC) has uncovered an alleged fake university operating from a three-bedroom apartment in Ilado, within the Olorunda Local Council Development Area (LCDA) of Lagos State, rescuing 106 young people believed to have been lured into a fraudulent admission scheme.

The operation, carried out by the NSCDC Badagry Area Command in the early hours of Monday, also led to the arrest of the suspected proprietor, who allegedly deceived prospective students from different parts of Nigeria and neighbouring West African countries with promises of admission into a foreign university.

According to the NSCDC, the raid followed several days of intelligence gathering and covert surveillance after security operatives received credible information about suspicious activities at the location.

Speaking after the operation, the Badagry Area Commander, Chief Superintendent Gbenga Ekunola, said investigators closely monitored the premises before moving in to dismantle the operation.

“We got reliable intelligence about the activities going on there. Our officers monitored the place for days before moving in. We have arrested the proprietor, who is assisting with our investigation, while the students have been taken into our protective custody,” Ekunola said.

Preliminary investigations revealed that the institution allegedly had no official name, registration, signboard or recognised campus, yet it presented itself online as a distance-learning centre affiliated with a foreign university.

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Investigators believe the operators used digital platforms and social media to attract unsuspecting admission seekers by promising internationally recognised academic qualifications.

The NSCDC disclosed that most of the rescued youths, aged between 19 and 24, travelled from states including Kogi, Oyo and several northern states after responding to online advertisements promoting the programme.

The investigation also revealed that some of the victims came from neighbouring countries, including Niger, Cameroon and Togo, believing they were enrolling in a legitimate foreign-affiliated tertiary institution.

According to investigators, the victims allegedly paid between ₦200,000 and ₦1.5 million as admission and processing fees, while some foreign nationals reportedly paid between $400 and $500 to secure admission into the purported institution.

The corps further alleged that participants were encouraged to recruit additional students in exchange for commissions, with the recruitment model operating in a manner similar to a Ponzi or multi-level marketing (MLM) scheme.

One of the rescued students reportedly told investigators that after paying $400 to join the programme, he persuaded his brother in Kogi State to enrol and had already started receiving referral commissions.

Investigators also alleged that some participants earned additional income by marketing unidentified products online while receiving commissions from product sales and recruitment activities.

Ekunola said many parents and guardians were unaware of the true nature of their children’s activities in Badagry.

“We have started contacting their families. One parent told us her child informed the family that he came to Badagry to learn a trade, not to attend a university. That shows many of these parents were completely unaware,” he said.

The area commander disclosed that all 106 rescued youths would undergo profiling, counselling and other necessary procedures before being reunited with their families after investigations are concluded.

He warned individuals and groups operating illegal educational institutions to stop exploiting admission seekers, stressing that anyone found culpable would face prosecution in accordance with the law.

The NSCDC also announced that investigations have been expanded to identify other members of the alleged syndicate, trace financial transactions linked to the operation and determine whether similar fraudulent admission schemes are operating in other parts of the country.

The corps urged parents, guardians and prospective students to verify the accreditation status of any tertiary institution through relevant regulatory agencies before paying admission or processing fees.

Education experts have repeatedly warned that enrolling in unaccredited institutions could expose students to financial losses and certificates that are not recognised for employment, professional licensing or further academic studies.

The latest operation underscores the ongoing efforts by security agencies to dismantle illegal educational institutions and protect unsuspecting Nigerians from admission-related fraud.

NSCDC busts alleged fake university in Lagos, rescues 106 students

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Former Miss Universe Nigeria Chidimma Adetshina battles deportation in South African court

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July 21, 2026

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Former Miss Universe Nigeria Chidimma Adetshina battles deportation in South African court
Former Miss Universe Nigeria Chidimma Adetshina

Former Miss Universe Nigeria Chidimma Adetshina battles deportation in South African court

Former Miss Universe Nigeria 2024 and Miss Universe Africa & Oceania, Chidimma Adetshina, has appeared before the Cape Town Regional Court to challenge the South African Department of Home Affairs’ attempt to deport her, as a legal battle over her immigration status continues to attract attention across Africa.

The latest court hearing followed an application filed by South Africa’s Department of Home Affairs, which is seeking judicial approval to continue Adetshina’s detention pending her deportation. Her legal team, however, argues that the deportation process is unlawful and has asked the court to halt the proceedings while her immigration status is fully determined.

Adetshina was arrested in June 2026 after the Department of Home Affairs alleged that she had entered South Africa without lawful immigration status after previously being declared a prohibited person. Authorities subsequently initiated deportation proceedings, while her lawyers insisted that she had been taking steps to regularise her stay in the country.

During the proceedings, Adetshina’s legal representatives argued that she is not a flight risk, describing her as a globally recognised public figure who has cooperated with immigration authorities throughout the process. They also informed the court that she is willing to surrender her South African passport if necessary and comply with any conditions the court may impose while the case is being determined.

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The defence further submitted an affidavit detailing the efforts Adetshina has made to regularise her immigration status, maintaining that she should not be detained or deported before the legal issues surrounding her residency are resolved.

The immigration dispute is the latest chapter in a controversy that first emerged during the Miss South Africa 2024 pageant.

Born in Soweto to a Nigerian father and a Mozambican mother, Adetshina was among the leading contestants for the Miss South Africa crown before withdrawing from the competition after questions were raised about her family’s citizenship documentation.

In August 2024, South Africa’s Department of Home Affairs announced that preliminary investigations suggested Adetshina’s mother may have been involved in identity fraud. Although the investigation focused on her mother’s documentation, the controversy triggered widespread online criticism and xenophobic attacks directed at Adetshina because of her Nigerian heritage, despite her being born in South Africa and meeting the pageant’s eligibility requirements.

Following her withdrawal from the South African competition, Adetshina accepted an invitation to contest the Miss Universe Nigeria 2024 pageant, where she emerged winner and went on to represent Nigeria at the Miss Universe 2024 competition.

She achieved international acclaim after finishing as first runner-up at the global pageant and was crowned Miss Universe Africa & Oceania, recording one of Nigeria’s strongest performances in the competition’s history.

Meanwhile, lawyers representing the Department of Home Affairs maintained that the agency acted within the law in declaring Adetshina a prohibited person and initiating deportation proceedings. They urged the court to uphold the department’s actions, arguing that immigration laws must be enforced consistently.

The case has also drawn legal attention following a recent ruling by the Western Cape High Court, which questioned the authority of magistrates to issue warrants authorising immigration detention. That judgment has become one of the legal issues being considered in Adetshina’s challenge against her continued detention.

After hearing arguments from both parties, the Cape Town Regional Court reserved judgment and adjourned the matter. The court is expected to deliver its ruling on August 19, 2026, a decision that could determine whether Adetshina remains in South Africa or faces deportation.

The outcome of the case is expected to have broader implications for immigration enforcement, administrative justice and the treatment of citizenship-related disputes in South Africa.

Former Miss Universe Nigeria Chidimma Adetshina battles deportation in South African court

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Police arrest hospital cleaner for allegedly stealing NYSC doctor’s ₦18m car in Adamawa

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July 21, 2026

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Police arrest hospital cleaner for allegedly stealing NYSC doctor's ₦18m car in Adamawa

Police arrest hospital cleaner for allegedly stealing NYSC doctor’s ₦18m car in Adamawa

The Adamawa State Police Command has arrested a 26-year-old hospital cleaner, Mohammed Dan-Azumi, for allegedly stealing a 2016 Toyota Corolla Sport valued at about ₦18 million from a serving National Youth Service Corps (NYSC) doctor in the state.

The suspect was apprehended in Kano State after an intelligence-led operation by operatives of the State Intelligence Department (SID), Yola, who also recovered the stolen vehicle.

According to a statement issued on Tuesday by the command’s spokesperson, SP Suleiman Nguroje, the incident was reported after the vehicle owner entrusted the car to Dan-Azumi for washing.

The police said the suspect, who is from Girei Local Government Area of Adamawa State, allegedly drove the vehicle away instead of returning it to its owner.

“The breakthrough followed a report lodged by the owner of the vehicle, who stated that he had entrusted his vehicle to Mohammed Dan-Azumi, 26, of Girei Local Government Area, for washing. The suspect allegedly absconded with the vehicle to an unknown destination,” the statement read.

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Following the complaint, detectives attached to the State Intelligence Department (SID) immediately launched a coordinated investigation, deploying intelligence-gathering techniques to track the suspect’s movements.

The operation led officers to Kano State, where Dan-Azumi was arrested and the stolen vehicle was successfully recovered.

Findings revealed that the suspect works as a cleaner at Girei Cottage Hospital, where the vehicle owner, a serving NYSC member, is undergoing his primary assignment as a medical doctor.

Police said investigations are continuing to establish the full circumstances surrounding the alleged theft and determine whether any other persons were involved in the crime.

The suspect is expected to be arraigned in court upon the conclusion of the investigation.

Reacting to the successful operation, the Commissioner of Police, Adamawa State Command, CP Kabiru Hassan, commended the professionalism, dedication and swift response of the investigating team.

He reaffirmed the command’s commitment to tackling all forms of crime and criminality across the state and assured residents that the police would continue to strengthen intelligence-led policing to protect lives and property.

The commissioner also appealed to members of the public to support law enforcement agencies by providing timely, credible and actionable information that could aid the prevention, detection and investigation of criminal activities.

The recovery of the vehicle adds to the command’s recent efforts to combat vehicle theft and other property-related crimes in Adamawa State.

Police arrest hospital cleaner for allegedly stealing NYSC doctor’s ₦18m car in Adamawa

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