MTN Nigeria has temporarily suspended its airtime and data lending service, “Xtratime”, following the introduction of new regulatory requirements under Nigeria’s expanded digital credit framework.
The telecom operator said the move was necessary to comply with the Federal Competition and Consumer Protection Commission’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which establish a stricter licensing and oversight regime for digital credit providers.
In a corporate disclosure filed with the Nigerian Exchange Limited on Thursday, the company stated that the service would remain unavailable while it aligns with the updated rules.
Xtratime allows prepaid subscribers to borrow airtime or data and repay on their next recharge, but MTN noted that the offering now falls within the scope of the revised regulations, requiring additional compliance processes before it can resume.
“MTN Nigeria Communications Plc hereby notifies the Nigerian Exchange Limited and the investing public that the company has temporarily suspended its airtime and data credit advance service (‘Xtratime’),”
the firm said in the filing signed by Uto Ukpanah, its Company Secretary.
The company added that the suspension is tied to “the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025,” which introduce a new compliance and licensing framework for entities offering digital or non-traditional consumer credit.
Despite the pause, MTN assured customers that alternative channels for purchasing airtime and data remain available, noting that the suspension is not expected to significantly affect its earnings.
“Given its share within our revenue mix, we do not expect the temporary suspension to have a material impact,” the company said, adding that it would monitor customer usage patterns and provide updates in its first-quarter 2026 results.
The development underscores the widening scope of Nigeria’s consumer lending regulations, which now extend beyond traditional financial institutions to include telecom operators and other providers of short-term digital credit.
The FCCPC had initially introduced a limited framework for digital lending in 2022 but expanded its oversight in 2025, requiring all operators in the space to register and obtain approval to continue offering such services.
Under the new rules, providers of non-traditional credit services—including airtime and data advances—must meet licensing conditions aimed at improving transparency, consumer protection, and data governance in the rapidly growing digital lending market.
The commission has also set a transition deadline for existing operators, with full compliance required by April 2026.
Analysts say the tighter regulations reflect growing concerns around consumer debt exposure, data privacy, and aggressive lending practices in Nigeria’s expanding digital credit ecosystem, particularly as mobile penetration continues to rise.
MTN said it would continue to engage with regulators and monitor developments as it works toward full compliance before restoring the service.
