Court Commences Contempt Proceedings Against FCCPC Over Digital Lending Order

The Federal High Court in Lagos has commenced committal proceedings against the Federal Competition and Consumer Protection Commission (FCCPC) for alleged disobedience of a subsisting court order. This order restrained the enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025. The proceedings started on Tuesday, with the judge, Ambrose-Lewis Allagoa, adjourning the matter until 22 May for continuation. The court's decision to commence proceedings is a direct result of the FCCPC's alleged failure to comply with the court order.

The dispute revolves around the legality of the FCCPC's regulatory framework for digital lending services, including airtime advances and other telecom-based credit products. The Wireless Application Service Providers Association of Nigeria (WASPAN) challenged the validity of the framework, arguing that the FCCPC exceeded its statutory powers and encroached on the regulatory remit of the Nigerian Communications Commission (NCC). They're concerned that the FCCPC's actions won't protect consumers as intended.

The FCCPC introduced the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations in September 2025 to curb predatory lending practices in Nigeria's fast-growing digital credit sector. The regulations required digital lenders to obtain licenses, disclose loan terms clearly, comply with data protection standards, and adopt ethical debt recovery practices. However, WASPAN challenged parts of the framework, stating that some of its members had already been affected by enforcement actions, including directives to provide compliance assurances and suspend certain operations, alongside threats of sanctions for non-compliance. It's clear that the regulations have had a significant impact on the industry.

The court granted an interim injunction restraining the FCCPC from enforcing or implementing the disputed provisions of the regulations. This order specifically covered several provisions of the framework and barred the commission from imposing sanctions, fines, or other penalties on members of WASPAN pending the determination of the substantive suit. The injunction is a significant development in the case, and it's likely to have a major impact on the outcome.

At Tuesday's proceedings, WASPAN's lawyer, Kemi Pinheiro, a Senior Advocate of Nigeria (SAN), told the court that despite the restraining order, the FCCPC had continued actions linked to enforcement of the suspended regulations. He argued that the alleged conduct amounted to disobedience of a valid court order and urged the court to first address the issue of contempt before proceeding with other pending applications. The FCCPC's actions, he said, demonstrate a disregard for the court's authority.

The FCCPC's lawyer, Funke Aboyade, also a SAN, opposed the application, arguing that the court should first determine the commission's preliminary objection and the substantive originating summons already before it. She submitted that committal proceedings at this stage would be premature, given that jurisdictional issues were still pending. However, Mr. Allagoa held that allegations of contempt must be addressed first, stressing that court orders remain binding unless set aside by a competent court. The judge's decision is a clear indication that the court won't tolerate disobedience.

The outcome of the case is expected to shape how digital lending and telecom-based credit services are regulated in Nigeria. It's a significant development in the country's financial sector, particularly in the digital lending space. The FCCPC's introduction of the regulations was aimed at protecting consumers from predatory lending practices. Yet, the challenge by WASPAN has raised questions about the commission's powers and the impact of the regulations on the industry. The case has sparked a debate about the role of regulatory bodies in the digital lending space.

The case has sparked a debate about the role of regulatory bodies in the digital lending space. It's a complex issue, with different stakeholders having varying opinions. The FCCPC's regulations were aimed at protecting consumers, but the challenge by WASPAN has raised questions about the commission's powers and the impact of the regulations on the industry. As the case continues, it's likely that more details will emerge, and the outcome will have significant implications for the digital lending space in Nigeria. The industry is watching the case closely, and it's clear that the outcome will have a major impact.

The FCCPC's Executive Vice Chairman, Tunji Bello, has been at the forefront of the commission's efforts to regulate the digital lending space. He has stated that the commission's goal is to protect consumers and ensure that digital lenders operate within the bounds of the law. However, the challenge by WASPAN has raised questions about the commission's approach and the impact of the regulations on the industry. The commission's actions, he says, are necessary to protect consumers. But WASPAN argues that the commission has overstepped its authority.

As the court proceedings continue, it's likely that more details will emerge about the FCCPC's regulations and the challenge by WASPAN. The outcome of the case will have significant implications for the digital lending space in Nigeria, and it's likely to shape the future of the industry. The case is a reminder of the complexities of regulating the digital lending space and the need for balance between protecting consumers and promoting innovation. The industry is waiting to see how the case will unfold, and it's clear that the outcome will have a major impact.

The Nigerian Communications Commission (NCC) has also been involved in the regulation of the digital lending space. The NCC has stated that it's working with the FCCPC to ensure that digital lenders operate within the bounds of the law. However, the challenge by WASPAN has raised questions about the NCC's role in the regulation of the digital lending space. The NCC's involvement in the case is significant, and it's likely to have a major impact on the outcome. The commission's actions, it says, are necessary to ensure that digital lenders comply with the law.

The court proceedings against the FCCPC are a significant development in the digital lending space in Nigeria. The outcome of the case will have significant implications for the industry, and it's likely to shape the future of digital lending in the country. As the case continues, it's likely that more details will emerge, and the outcome will be closely watched by stakeholders in the industry. The industry is waiting to see how the case will unfold, and it's clear that the outcome will have a major impact on the future of digital lending in Nigeria. The case is a complex one, and it's likely to have far-reaching implications for the industry.