Lagos
Millions of Nigerians who rely on borrowed airtime and data are facing disruption after MTN Nigeria announced the suspension of its Xtratime service. The decision, disclosed on Thursday, follows new regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC) requiring stricter licensing and compliance for digital lending services.
MTN said the temporary suspension is to comply with the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which expand oversight to include telecom operators offering airtime and data advances.
In a filing to the Nigerian Exchange Limited, signed by Company Secretary Uto Ukpanah, the telecom giant confirmed that its Xtratime service falls within the scope of the new rules.
“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 statement read.
The service, widely used by prepaid subscribers, allows customers to borrow airtime or data and repay on their next recharge — a feature many Nigerians depend on during cash shortages.
MTN explained that the suspension is part of efforts to implement new compliance processes, including licensing requirements for digital credit providers. Despite the disruption, the company said customers can still purchase airtime and data through other available channels.
The telecom operator also assured investors that the suspension is unlikely to significantly affect its earnings.
“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said, adding that it is monitoring customer behaviour and will provide updates in its first quarter 2026 results.
The FCCPC’s updated 2025 regulations build on an earlier framework introduced in 2022 but now extend to telecom operators and other non-traditional lenders.
Under the new rules, companies offering airtime or data advances must register and obtain regulatory approval before continuing operations. Full compliance is expected by April 2026.
The move reflects growing concerns around consumer debt, data privacy, and lending practices in Nigeria’s rapidly expanding digital credit market.
However, the enforcement has triggered widespread backlash, particularly among low-income Nigerians who depend on these services for daily communication and small-scale business transactions.
In many parts of the country, from busy Lagos streets to northern markets, users say the suspension has removed a crucial financial fallback.
An industry observer noted that the decision was not arbitrary but the result of ongoing regulatory friction between operators and authorities.
The situation has also taken a legal turn.
The Wireless Application Service Providers Association of Nigeria (WASPAN) secured an interim injunction at the Federal High Court in Lagos, challenging the FCCPC’s authority to enforce the new regulations.
In Suit No. FHC/L/CS/760/2026, Justice A. Lewis-Allagoa restrained the commission from implementing the rules pending the final determination of the case.
The ruling temporarily halts enforcement actions and offers some relief to stakeholders affected by the shutdown of services.
The FCCPC, led by Tunji Bello, has been increasing oversight of digital lending platforms amid rising complaints about predatory practices and misuse of customer data.
The expanded 2025 framework now includes telecom-based lending services, marking a significant shift in regulation within Nigeria’s digital economy.
At the same time, the Ministry of Communications, Innovation and Digital Economy, headed by Bosun Tijani, has been pushing for broader digital inclusion — a goal some stakeholders say could be affected by the current disruption.
As regulatory reviews and court proceedings continue, millions of Nigerians remain cut off from airtime and data advances they once relied on daily. The outcome of the legal challenge and compliance process will determine when — and under what conditions — these services may return.