WASPAN Accuses FCCPC of Approving New Lenders Despite Court Order and Suspension of DEON Framework
The Wireless Application Service Providers Association of Nigeria (WASPAN) has leveled accusations against the Federal Competition and Consumer Protection Commission (FCCPC), alleging that the commission has continued to approve new firms under its Digital Economy and Online Lending (DEON) Consumer Lending Regulations, despite a subsisting court order and its own suspension of the regulatory framework.
WASPAN stated that the FCCPC recently expanded the list of approved operators under the DEON framework from five to nine companies. This expansion allegedly occurred even though the regulations are currently the subject of ongoing litigation and were officially suspended by the FCCPC on May 22, 2026.
The dispute stems from a lawsuit filed by WASPAN challenging the DEON Regulations. On April 15, 2026, the Federal High Court in Lagos issued an interim injunction restraining the FCCPC from enforcing these regulations against WASPAN members and from interfering with services provided by them, pending the determination of the case. The court also dismissed the FCCPC's subsequent application to set aside this order on April 28, 2026.
WASPAN views the FCCPC's actions as a disregard for the judicial directive and a creation of commercial rights under a framework that is legally restrained. The association has called for the FCCPC to fully comply with the court's orders, emphasizing that a court order is a binding judicial directive.
In response to the court's order, the FCCPC had announced the suspension of the DEON Regulations' implementation and enforcement on May 22, 2026, stating it was acting in obedience to the rule of law.
The FCCPC has not yet publicly responded to WASPAN's latest allegations. The situation highlights the ongoing tensions surrounding the regulation of Nigeria's digital lending sector, with both regulators and industry stakeholders seeking clarity and adherence to legal processes.
Industry stakeholders have expressed concerns that granting new approvals under a suspended and judicially challenged framework creates uncertainty for operators and consumers alike.
The court has reserved judgment in the main suit and is expected to rule on July 20, 2026, which should provide clarity on the FCCPC's regulatory authority in this area.
WASPAN stated that the FCCPC recently expanded the list of approved operators under the DEON framework from five to nine companies. This expansion allegedly occurred even though the regulations are currently the subject of ongoing litigation and were officially suspended by the FCCPC on May 22, 2026.
The dispute stems from a lawsuit filed by WASPAN challenging the DEON Regulations. On April 15, 2026, the Federal High Court in Lagos issued an interim injunction restraining the FCCPC from enforcing these regulations against WASPAN members and from interfering with services provided by them, pending the determination of the case. The court also dismissed the FCCPC's subsequent application to set aside this order on April 28, 2026.
WASPAN views the FCCPC's actions as a disregard for the judicial directive and a creation of commercial rights under a framework that is legally restrained. The association has called for the FCCPC to fully comply with the court's orders, emphasizing that a court order is a binding judicial directive.
In response to the court's order, the FCCPC had announced the suspension of the DEON Regulations' implementation and enforcement on May 22, 2026, stating it was acting in obedience to the rule of law.
The FCCPC has not yet publicly responded to WASPAN's latest allegations. The situation highlights the ongoing tensions surrounding the regulation of Nigeria's digital lending sector, with both regulators and industry stakeholders seeking clarity and adherence to legal processes.
Industry stakeholders have expressed concerns that granting new approvals under a suspended and judicially challenged framework creates uncertainty for operators and consumers alike.
The court has reserved judgment in the main suit and is expected to rule on July 20, 2026, which should provide clarity on the FCCPC's regulatory authority in this area.
This article and image are AI generated. For informational purposes only.