Telecom giant halts credit advance offering amid new consumer lending compliance rules.
By Baron Eloagu | Abuja, Nigeria
MTN Nigeria has suspended its popular airtime and data lending service, Xtratime, following new regulatory requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
The move comes as telecom operators adjust to stricter compliance rules governing digital lending services in the country.
New Regulation Triggers Service Suspension
In a corporate disclosure to the Nigerian Exchange Limited on Thursday, MTN Nigeria confirmed the temporary suspension of its Xtratime service.
The company said the decision was driven by the implementation of the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which establishes a new licensing and compliance framework for digital credit providers.
Signed by Company Secretary Uto Ukpanah, the notice stated that Xtratime—widely used by prepaid subscribers—allows customers to borrow airtime or data and repay on their next recharge.
Compliance and Transition Window
MTN explained that the suspension is necessary to align its operations with the new regulatory framework, which now classifies airtime and data lending as consumer credit services.
Under the regulations, all operators offering such services are required to register with the FCCPC and meet compliance standards before continuing operations.
The FCCPC had earlier set an April 2026 deadline for affected companies to complete their registration under transitional arrangements.
The Commission warned that operators failing to comply within the stipulated timeframe could face regulatory sanctions.
Minimal Impact on Revenue Expected
Despite the suspension, MTN assured investors that the move is unlikely to significantly affect its financial performance.
The company noted that the service represents a relatively small portion of its overall revenue mix.
It added that customers can continue to access airtime and data through other available digital platforms while the suspension remains in effect.
MTN also said it is monitoring customer usage patterns and will provide further updates on any measurable impact in its first quarter 2026 financial results.
- New FCCPC Rules Redefine Digital Lending in Telecom Sector
- MTN Assures Investors of Limited Financial Impact
The suspension signals tighter regulatory oversight of digital financial services in Nigeria’s telecom sector. It also highlights the growing intersection between telecommunications and financial services, with implications for millions of prepaid users who rely on micro-credit services like airtime lending.
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