By Katherine Diakpomere
The legal battle over the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations has taken a fresh twist as the Wireless Application Service Providers Association of Nigeria (WASPAN) heads to the Court of Appeal, seeking to stop enforcement of the regulations pending the determination of its appeal.
The move followed last week’s judgment of the Federal High Court in Lagos, which upheld the DEON Regulations while affirming that the FCCPC has powers to regulate competition and protect consumers but cannot issue telecommunications licences.
Justice Ambrose Lewis-Allagoa, who delivered the judgment on July 20, dismissed the FCCPC’s preliminary objection and held that WASPAN’s suit disclosed a reasonable cause of action.
The court also ruled that the association had properly served the required pre-action notice on the commission.
The judge further held that the case centred on the interpretation of legislation rather than a claim for damages and that any alleged non-compliance with the statutory pre-action notice requirement did not rob the court of jurisdiction.
On the substantive issues, the court ruled that Sections 104, 105, 106 and 163 of the Federal Competition and Consumer Protection Act empower the FCCPC to investigate anti-competitive conduct, protect consumers and make regulations.
Justice Allagoa also held that there was no conflict between the Federal Competition and Consumer Protection Act and the Nigerian Communications Act, affirming that the Nigerian Communications Commission (NCC) remains the statutory regulator responsible for licensing operators in the telecommunications sector.
The judge, however, stressed that the FCCPC lacks the authority to issue telecommunications licences, declaring that “nothing in the DEON Regulations creates a telecommunication licensing.”
Despite the judgment dismissing its substantive claims, WASPAN has filed a notice of appeal and returned to the Federal High Court with a Motion on Notice seeking interim orders to preserve the status quo pending the outcome of the appeal.
Among the reliefs sought is “an order of injunction restraining the Defendant whether by itself, officers, employees, agents or such other persons howsoever named from enforcing, implementing and/or otherwise giving effect to the enforcement and/or implementation of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025” until the appeal is decided.
The association is also asking the court to restrain the FCCPC from interfering with services rendered by its members or imposing sanctions, penalties or fines over alleged non-compliance with the regulations while the appeal is pending.
It further sought an order restraining the commission “from taking any steps towards interfering with or preventing the Plaintiff’s members from providing or continuing to provide or deploy any services or product governed by the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025.”
According to WASPAN, the application is necessary to preserve the subject matter of the appeal and ensure that the appellate proceedings are not rendered nugatory.
The latest development means the high-stakes legal contest over the regulation of Nigeria’s digital consumer lending ecosystem is far from over, with the Court of Appeal now expected to determine whether enforcement of the DEON Regulations should be suspended pending the final resolution of the dispute.
(The Sun)
