Nigeria’s telecom sector is facing renewed uncertainty as the Association of Licensed Telecoms Operators of Nigeria (ALTON) has urged swift resolution of an escalating regulatory dispute affecting the country’s airtime credit market, warning that prolonged instability could undermine consumer welfare, investor confidence, and the credibility of regulatory institutions.
Speaking on the development, Gbenga Adebayo, ALTON chairman, said the situation has moved beyond a routine policy disagreement and now reflects deeper structural concerns around regulatory coordination and adherence to judicial orders.
According to him, the continued disruption in the market, despite existing court directives, raises questions about institutional alignment and respect for the rule of law in the telecommunications space.
“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, while also noting that “Court orders have been issued, businesses hold valid licences, and consumers are still being affected. All parties have a responsibility to ensure an orderly resolution.”
ALTON stressed that the implications extend far beyond industry players, noting that the airtime credit ecosystem has become an informal financial support system for millions of Nigerians, particularly small traders, artisans, and low-income earners who rely on short-term airtime advances to sustain daily economic activity.
The association estimates that the market is worth between N300 billion and N400 billion annually, underscoring its significance within Nigeria’s informal economic structure.
Adebayo further warned that the ongoing uncertainty risks weakening Nigeria’s broader investment climate, especially if regulatory bodies and court pronouncements are perceived to be operating at cross purposes.
At the centre of the dispute is a jurisdictional overlap between the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC), both of which have asserted regulatory influence over airtime credit services and Value Added Service (VAS) providers.
While ALTON maintains that the NCC retains clear statutory authority under the Nigerian Communications Act to regulate telecom operations, including VAS providers, it argues that overlapping mandates have created confusion that is now disrupting commercial operations across the sector.
The association also revealed that it had previously alerted the NCC as early as August 2025, warning that inconsistencies arising from regulatory overlaps and inter-agency arrangements could destabilise the market if not urgently addressed.
Despite interim injunctions issued by the Federal High Courts in Lagos and Abuja restraining interference in the operations of licensed VAS providers, ALTON says uncertainty persists. This, it argues, reveals a growing disconnect between regulatory enforcement actions and judicial directives.
The disruption has already affected key industry players, including licensed operators such as Nairtime Nigeria Limited and members of the Wireless Application Service Providers Association of Nigeria (WASPA), whose operations remain under pressure amid the regulatory uncertainty.
Regulatory crossfire and market confusion
The recent tensions in the telecom sector were partly triggered by a wave of temporary suspensions affecting airtime and data advance services across major operators.
Leading the move, Airtel Nigeria and MTN Nigeria Communications Plc suspended their “Xtratime” airtime and data credit services, explaining that the decision was taken to align with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.
Although Glo and T2 Mobile did not issue any official statements on the development, checks across their networks indicate that they have also quietly halted similar credit advance services, further tightening access for subscribers who rely on such short-term offerings.
While operators pointed to compliance with evolving regulatory requirements as the reason for the disruption, the development quickly triggered mixed reactions from consumers, many of whom depend on airtime credit as a fallback option for daily communication needs.
In the midst of the public concern, the Federal Competition and Consumer Protection Commission (FCCPC) moved to clarify its position, stressing that it did not impose any ban on airtime borrowing or data advance services.
The Commission, through its director of Corporate Affairs, Ondaje Ijagwu, explained that telecom operators were given a 90-day transition period beginning in mid-2025 to align their operations with the new regulatory framework.
However, according to the FCCPC, many operators failed to meet the initial compliance deadline, leading to an extension until January 5, 2026. Even with the extended timeline, the Commission noted that compliance levels within the telecom sector remained inadequate.
The FCCPC maintained that any suspension or modification of airtime credit services should be understood as a business decision by service providers, not as a regulatory ban.
As the dispute continues to unfold, industry stakeholders warn that the lack of clarity around jurisdictional authority and enforcement responsibility could have long-term implications for Nigeria’s digital economy.
With millions of Nigerians dependent on airtime credit services for daily connectivity and informal credit access, the outcome of the regulatory standoff is expected to shape not only telecom operations but also broader questions of market stability and institutional trust.
