No Ban on Data Advance Services, FCCPC Clarifies Amid Viral Reports

The Federal Competition and Consumer Protection Commission (FCCPC) has responded to several newspaper reports and a viral anonymous social media post alleging that it cancelled, shut down, or banned airtime borrowing and data advance services in Nigeria.

The Commission clarified that these claims are false. It has not prohibited airtime borrowing or data advance services, nor has it issued any directive preventing consumers from accessing legitimate telecom value-added services.
The FCCPC explained that following numerous consumer complaints—including issues such as unclear charges, unexplained deductions, aggressive debt recovery methods, poor disclosure practices, and lack of accountability in parts of the digital lending and advance-services market—it introduced the DEON Consumer Lending Regulations in July 2025.
These regulations were designed to address the excesses of certain service providers whose practices had consistently harmed consumers and weakened trust in the market.
According to the Commission, the regulations aim to create a fair and transparent system by requiring proper registration, responsible lending practices, full disclosure of fees and terms, accessible complaint mechanisms, data protection safeguards, stronger accountability for third-party partners, and effective regulatory supervision.
In the telecom sector, the FCCPC noted that some operators adopted exclusionary third-party technical arrangements, violating provisions of the Federal Competition and Consumer Protection Act, 2018. The regulations were therefore introduced to open up the market, allowing both local and foreign participants to operate under fair competition principles.
The Commission emphasized that these measures are intended to benefit Nigerians by reducing exploitative practices, improving transparency, expanding consumer choice, and encouraging responsible innovation among compliant operators.
It also stated that certain vested interests and their foreign partners are resisting efforts to establish safer markets and fair competition, and have resorted to spreading misinformation.
Operators, the FCCPC added, must structure their commercial arrangements in compliance with Nigerian law, as outsourcing or business decisions do not exempt them from competition and consumer protection obligations.
When the framework took effect in July 2025, affected operators were given an initial 90-day compliance period to regularize their services and operations. However, this period was not effectively utilized, particularly within the telecom sector. The deadline was later extended to January 5, 2026, but compliance requirements were still not fully met by some operators.
Despite clear regulations, some service providers continued operating without proper registration, maintaining monopolistic practices that had previously generated consumer complaints related to transparency, charges, and accountability.
The FCCPC stressed that any temporary suspension, restriction, or operational change by service providers should be seen as a business or compliance decision by those operators—not a ban imposed by the Commission.
It further noted that it is misleading to blame regulatory actions for disruptions when operators had sufficient notice and opportunity to comply.
The Commission described attempts to portray temporary service challenges as the result of lawful regulation as deceptive, adding that Nigerians deserve accurate information rather than sensational claims.
Members of the public were urged to disregard false and misleading reports on the matter.
The FCCPC reaffirmed its commitment to protecting consumers, promoting fair competition, encouraging responsible innovation, ensuring transparency in digital financial services, and collaborating with regulators and service providers in the public interest.