Telecom firms raise alarm over ₦400bn market disruption, demand swift regulation

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The Association of Licensed Telecoms Operators of Nigeria has called for the immediate resolution of the ongoing regulatory dispute affecting Nigeria’s airtime credit market, warning that prolonged disruption could undermine consumer welfare, investor confidence, and the country’s regulatory credibility.

Speaking on behalf of the association, ALTON Chairman, Gbenga Adebayo, said the situation requires urgent intervention from all stakeholders, including regulators, telecom operators, and the Federal Government.

According to him, the issue goes beyond a disagreement between agencies, describing it as a broader test of the effectiveness of Nigeria’s regulatory framework. He noted that despite existing court orders and valid operational licences held by businesses, consumers continue to face disruptions.

The dispute follows interim injunctions issued by the Federal High Courts in Lagos and Abuja, which restrained interference in the operations of licensed Value Added Service (VAS) providers, including Nairtime Nigeria Limited and members of the Wireless Application Service Providers Association of Nigeria. However, the continued suspension of airtime credit services during this period has raised concerns across the industry.

At the centre of the issue is a jurisdictional conflict between the Federal Competition and Consumer Protection Commission and the Nigerian Communications Commission. While the NCC’s authority over the telecoms sector is defined under the Nigerian Communications Act, ALTON maintains that oversight of licensed VAS providers falls squarely within its mandate.

The association noted that it had earlier raised concerns with the NCC in August 2025, warning that regulatory overlaps—particularly those arising from FCCPC guidelines—could create legal and commercial uncertainty if left unresolved.

Adebayo emphasised that the implications extend beyond corporate interests, noting that the airtime credit market functions as an informal financing system for millions of Nigerians, especially small traders, artisans, and entrepreneurs who rely on short-term airtime advances to support daily economic activities. The market is estimated to be worth between ₦300 billion and ₦400 billion annually.

“These are everyday Nigerians who depend on this service as an alternative to formal credit. Any disruption is immediately felt at the grassroots level,” he said.

He also warned that unresolved regulatory conflicts could deter investment in Nigeria’s digital infrastructure, stressing that investors prioritise clarity and consistency in regulatory environments.

“Investor confidence is shaped not just by how disputes arise, but by how they are resolved. A system marked by uncertainty and disruption will struggle to attract long-term capital,” he added.

ALTON urged both the FCCPC and NCC to strengthen inter-agency coordination, resolve the jurisdictional issues promptly, and restore stability to the market. The association also called for adherence to court directives throughout the resolution process and expressed its willingness to engage constructively with regulators and the government to achieve a sustainable outcome.

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