The Federal High Court in Lagos has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) has no authority to issue licences in the telecommunications sector, affirming that the Nigerian Communications Commission (NCC) remains the exclusive licensing regulator.
Delivering judgment in Suit No. FHC/L/CS/760/2026 on Monday, Justice Ambrose Lewis-Allagoa held that while the FCCPC is empowered to oversee competition and consumer protection in airtime and data credit services, its regulatory functions operate alongside those of the NCC and do not override the commission’s statutory responsibilities.
The court also upheld the legality of the Digital Economy Operations Network (DEON) Consumer Lending Regulations 2025, ruling that they fall within the constitutional and statutory powers of the FCCPC.
Justice Lewis-Allagoa explained that the relationship between the FCCPC and sector-specific regulators is one of complementarity rather than substitution.
“Concurrency means coexistence, not displacement,” the judge stated, stressing that both agencies have distinct but complementary responsibilities.
The court affirmed the FCCPC’s powers over competition and consumer protection as provided under Sections 104 and 105 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, while preserving the NCC’s exclusive mandate over technical regulation, licensing and prudential oversight under the Nigerian Communications Act 2003.
It further ruled that the FCCPC lacks the legal authority to issue telecommunications licences, noting that the DEON Regulations do not create a licensing framework for telecom operators. According to the judgment, only the NCC has the statutory power to license entities operating within the telecommunications sector.
The decision comes months after the FCCPC approved five companies in April 2026 to operate as airtime and data credit providers under the DEON framework, raising fresh questions about the legal basis of those approvals.
The ruling is the first judicial interpretation clarifying the regulatory responsibilities of the FCCPC and the NCC over airtime and data credit services, a market estimated to be worth between ₦300 billion and ₦400 billion annually and used daily by about 40 million Nigerians.
Reacting to the judgment, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, welcomed the court’s clarification, describing it as an important milestone for the industry.
“The court has done something important. It has confirmed the FCCPC’s authority and, in the same breath, affirmed that the NCC’s role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court’s reasoning requires,” he said.
Adebayo urged both regulators to engage industry stakeholders through formal consultations before implementing enforcement actions, recalling that airtime credit services were suspended for three months earlier this year following a regulatory directive before being restored.
“Forty million Nigerians depend on these services. The court has made clear that both regulators have a role. The industry is asking them to define how that works before any action that could disrupt access again,” he added.
He also noted that the Presidential Enabling Business Environment Council (PEBEC) directive issued on April 6, 2026, requiring federal agencies to conduct Regulatory Impact Assessments before introducing significant regulatory changes, remains in force.
Legal observers say the judgment is expected to serve as a key precedent in defining how the FCCPC and sector-specific regulators will jointly exercise oversight as digital financial products increasingly cut across traditional regulatory boundaries.