FCCPC debunks ban on airtime loans, data advance report

An unknown individual holding a phone and attempting to take airtime loan from a telecom network in Nigeria
The Federal Competition and Consumer Protection Commission (FCCPC) has denied directing telecommunications service providers to ban air time loans and data advances, claiming that the report was misleading.

The Commission in a statement on its official X handle on Friday, said the report, following widespread confusion triggered by viral social media posts was false and misleading.

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According to the Commission, there was no statement directing the service providers to prohibit consumers from accessing lawful telecommunication value-added services.

“The Commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services,” the statement read in part.

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The FCCPC explained that the misunderstanding stemmed from regulatory measures introduced in July 2025 under the DEON Consumer Lending Regulations.

According to the Commission, the framework was introduced after a rise in consumer complaints about the operations of digital lending and telecom advance services.

The Commission posited that the It noted that opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and weak accountability had become widespread in the sector which it cannot wait supine watching irregularities.

The Commission said, it introduced new regulations to ensure transparency, fairness and accountability, adding that operators are expected to properly register, sufficiently disclose fees and terms and adopt responsible lending practices, and provide accessible channels for consumer complaints.

“The primary aim is to promote a fairer and more transparent system by mandating proper registration, responsible lending conduct, clear disclosure of fees and terms, accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight,” the FCCPC stated.

The Commission added that the reforms are expected to strengthen consumer protection, improve service delivery, and boost confidence in the telecom market.

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