Nigeria’s fuel subsidy regime operated for decades through a system in which the government licensed importers and reimbursed them under arrangements that were not fully transparent to the public.

When the subsidy programme later came under extensive public scrutiny through audits, investigations and official reviews, questions were raised about transparency, accountability and the administration of the scheme.

Governance scholars often use the term state capture to describe situations where regulatory decisions are perceived to disproportionately benefit particular private interests rather than promote open competition. A common concern in such discussions is the absence of publicly available criteria for regulatory decisions, making independent assessment difficult.

India experienced a similar debate in its coal sector. The country’s Comptroller and Auditor General criticised the allocation of coal mining blocks without competitive bidding or clearly published evaluation criteria. In 2014, the Supreme Court of India cancelled 214 coal block allocations, holding that the allocation process lacked transparency and fairness.

Some observers argue that Nigeria’s ongoing debate over airtime credit services raises similar governance questions that deserve careful examination beyond partisan political arguments.

The Federal Competition and Consumer Protection Commission (FCCPC) issued an enforcement directive under its DEON Consumer Lending Regulations, after which four telecommunications operators suspended airtime credit services reportedly used by millions of Nigerians. The Commission subsequently approved five companies to participate in the market.

The approvals were granted while litigation concerning aspects of the DEON regulatory framework was pending before the Federal High Court.

One of the issues raised by stakeholders is the extent of public information available regarding the approval process. Questions have been asked about the criteria used for selecting the approved companies, the number of applicants considered and the due diligence undertaken before approvals were granted in a market estimated by ALTON Chairman, Gbenga Adebayo, to be worth between ₦300 billion and ₦400 billion annually.

The Foundation for Investigative Journalism (FIJ) reported that one of the approved companies, Rane Interaktive, was incorporated several weeks after the DEON Regulations were gazetted. The report raised questions about the company’s eligibility under the regulatory framework. As of the time of writing, the FCCPC has not publicly addressed the specific issues raised in that report.

Public information regarding the ownership structures, operational experience and qualifications of the other approved companies also remains limited, prompting calls from some stakeholders for greater transparency in the approval process.

Media reports later suggested that the number of approved companies had increased beyond the initial five. The FCCPC subsequently denied authorising any additional approvals. The Commission’s response, however, attracted less public attention than the initial reports.

The Presidential Enabling Business Environment Council (PEBEC) issued a directive on 6 April 2026 requiring federal agencies to undertake Regulatory Impact Analysis (RIA) when introducing significant regulatory changes. Some commentators have argued that an RIA should have been conducted before extending the DEON framework to airtime credit services, while others maintain that the Commission acted within its statutory mandate.

The FCCPC’s consumer protection mandate is well established, and the DEON Regulations were introduced to address concerns relating to digital lending practices. Nevertheless, governance experts argue that regulatory objectives are best achieved through transparent decision-making processes that inspire public confidence.

Nigeria has invested considerable effort in strengthening its regulatory and investment environment through initiatives such as the Renewed Hope Agenda, the National Development Plan (2026–2030) and reforms coordinated by PEBEC. These initiatives seek to promote transparency, consistency and predictability in government regulation.

Against this backdrop, some analysts believe that publishing the criteria for approvals, explaining the selection process and providing greater disclosure around regulatory decisions would help strengthen public confidence and reinforce Nigeria’s reputation as a transparent investment destination.

Andrew Olusoji is a political consultant based in Ado Ekiti.