Court Restrains FCCPC From Enforcing Key Loan Provisions

By Adedapo Adesanya

The Federal High Court sitting in Lagos has granted an interim injunction restraining the Federal Competition and Consumer Protection Commission (FCCPC) from enforcing key provisions of its Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025, pending the determination of a substantive suit before the court.

Justice Ambrose Lewis-Allagoa granted the order following an ex-parte application filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), which is challenging the legality and applicability of the regulations.

The association had approached the court on April 14, 2026, seeking urgent judicial intervention to halt the implementation of what it described as ultra vires provisions of the regulatory framework, also referred to as the “DEON Consumer Lending Regulations.”

In the ruling, the court held that the applicant had demonstrated sufficient urgency and legal grounds to warrant temporary protection pending the hearing of the motion on notice for an interlocutory injunction.

WASPA Nigeria, represented by Mrs Kemi Pinheiro, SAN, argued that several provisions of the regulations impose obligations on its members operating in the telecommunications and digital services ecosystem.

The group further contended that the FCCPC lacked statutory authority to regulate technical and operational aspects of telecommunications services, which it said fall under the mandate of the Nigerian Communications Commission (NCC).

In its motion, WASPA urged the court to restrain the FCCPC from enforcing specific provisions of the regulations, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29 and 32, as well as from imposing sanctions, penalties, or compliance directives on its members.

The court, after reviewing the supporting affidavit deposed to by Ayo Stuffman, granted interim relief preserving the status quo.

Justice Lewis-Allagoa, in his ruling, restrained the FCCPC from implementing or giving effect to the contested provisions of the regulations, taking enforcement steps against WASPA members, or issuing further directives under the disputed framework.

The judge also barred the commission from imposing sanctions or penalties on affected entities pending the determination of the substantive application.

The matter was adjourned to April 27, 2026, for the hearing of the motion on notice.

The ruling represents a temporary setback for the FCCPC, which recently introduced the regulations as part of efforts to strengthen oversight of Nigeria’s fast-growing digital lending and fintech ecosystem.

The regulations were designed to address consumer protection concerns, data privacy issues, and unregulated lending practices within the sector.