The Association of Licensed Telecoms Operators of Nigeria has called for an urgent resolution of the regulatory standoff between the Federal Competition and Consumer Protection Commission and the Nigerian Communications Commission over airtime lending services, warning that the ongoing uncertainty is disrupting a market worth an estimated N300bn to N400bn annually.

In a statement issued on Tuesday and signed by ALTON Chairman, Gbenga Adebayo, the association said the dispute has moved beyond a regulatory disagreement and now poses broader risks to consumer welfare, investor confidence, and the stability of Nigeria’s telecoms investment climate.

“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,” Adebayo said.

“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.”

The intervention comes amid escalating tensions between both regulators over jurisdictional control of airtime lending and related value-added services within Nigeria’s telecommunications ecosystem.

ALTON said interim injunctions issued by Federal High Courts in Lagos and Abuja had restrained interference in the operations of licensed Value Added Service providers, including airtime credit operators, but services have remained disrupted in parts of the market despite the court orders.

The association argued that the regulatory uncertainty stems from overlapping mandates between the FCCPC and NCC, particularly in relation to consumer protection oversight versus sector-specific regulation governed under the Nigerian Communications Act.

According to ALTON, the lack of alignment between both agencies has created compliance uncertainty for operators and slowed down service delivery in a segment widely used by millions of Nigerians.

The group also noted that it had previously raised concerns with the NCC as far back as August 2025, warning that conflicting regulatory instruments and existing inter-agency agreements risked destabilising the market if left unresolved.

The regulatory action began after the consumer watchdog introduced the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations 2025, aimed at tightening oversight of digital credit services, including airtime and data lending offered through telecom operators.

The framework, which came into effect in 2025 with compliance deadlines extending into 2026, requires all providers of digital credit, including airtime advance services, to register with the commission, meet disclosure standards, and comply with consumer protection rules such as transparent pricing and ethical debt recovery practices.

Following the rollout of the rules last week, telecom operators, including MTN and Airtel, began temporarily suspending their airtime and data lending services (Xtratime/Extratime) to comply with the new regulatory requirements and licensing conditions introduced under the framework.

The FCCPC, however, later clarified that it did not issue a blanket ban on airtime borrowing services, stressing that the suspensions were operational decisions by telecom operators as they adjusted to compliance requirements rather than a direct prohibition by the regulator.

The regulatory move sparked a jurisdictional dispute because telecom stakeholders argued that airtime lending falls under the statutory oversight of the NCC, creating tension over whether consumer credit rules or telecom regulations should take precedence.

Beyond industry concerns, ALTON stressed that airtime credit plays a critical role in Nigeria’s informal financial ecosystem, particularly for small traders, artisans, and low-income users who rely on short-term airtime advances as a substitute for formal credit access.

“Behind every naira in that market is a Nigerian who cannot go to a bank and get a loan. Airtime credit is how they bridge the gap,” Adebayo noted. “When the service goes dark, they feel it immediately.”

On investment implications, the association warned that prolonged regulatory uncertainty could weaken Nigeria’s appeal to private capital in the digital infrastructure space.

“Investors take their cues from how disputes are managed, not just how they begin,” Adebayo added. “A market where regulatory jurisdiction is unclear will struggle to attract the kind of long-term investment Nigeria needs.”

ALTON called on both the FCCPC and NCC to engage in urgent inter-agency coordination to resolve the jurisdictional overlap and restore clarity to the airtime lending market. It also urged all parties to respect existing court orders while working towards a coordinated regulatory framework that ensures stability for operators and consumers alike.