Nigeria’s two largest telecom operators have temporarily suspended their airtime and data lending services as new consumer lending regulations force them into full regulatory compliance.
MTN Nigeria suspended its Xtratime service on Thursday, April 17, 2026, followed by Airtel Nigeria on Friday, citing the need to align with “evolving requirements” under new digital lending rules.
New Regulations Behind The Suspension
The suspensions stem from the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online, or Non-Traditional Consumer Lending (DEONCL) Regulations passed in July 2025.
These guidelines apply to any entity involved in digital consumer lending, bringing airtime and data advances into scope. Telcos must now obtain licenses and meet compliance requirements before continuing the services.
“MTN Nigeria has temporarily suspended its airtime and data credit advance service (Xtratime). This relates to the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025,” the telco said in its official filing.
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FCCPC Denies Ordering Suspension
In a Friday statement, the FCCPC pushed back against claims that it ordered the suspension, stating it “has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services.”
The regulator framed the disruptions as consequences of operators’ failure to comply within stipulated timelines. Affected digital lending operators, including telcos, were initially given a 90-day compliance window in 2025, later extended to January 5, 2026, but relevant operators failed to meet necessary compliance steps.
Why The Regulations Exist
The FCCPC introduced the rules following “a deluge of consumer complaints” involving opaque charges, unexplained deductions, aggressive recovery practices, and poor disclosure standards across digital lending services.
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“In the telecom sector, our findings indicated that some operators engaged in exclusionary third-party technical arrangements in clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018,” the regulator said Friday.
What Compliance Requires
Securing approval under the framework requires service providers to:
- Apply to the FCCPC with corporate and ownership documents
- Disclose lending models, including interest rates, charges, and default fees
- Declare all digital lending applications and interfaces used to issue credit
- Provide evidence that systems meet data protection and security standards
- Submit formal consumer lending or service-level agreements for any partnerships with banks or fintechs
The FCCPC charges approval and renewal fees, including an additional ₦500,000 ($372) for each lending application beyond the initial five permitted under a single approval.
Financial Impact On Telcos
While not usually reported separately, airtime lending contributes significantly to telcos’ revenue.
In 2025, MTN Nigeria’s fintech revenue reached ₦191.3 billion ($142.5 million), growing 80% from the previous year. About ₦10.9 billion ($8.1 million) accounted for core fintech revenue, while the rest significantly came from airtime lending and other value-added services.
For Airtel Nigeria, the telco reports airtime credit under its mobile services revenue segment. In the nine months to December 2025, “other” revenue, where airtime and data credit earnings sit, reported $113 million, up 44% from the previous year.
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By comparison, Airtel Nigeria’s mobile money product, SmartCash, earned only $6 million over the same period, underscoring how small its fintech line remains relative to core mobile services income.
Why Airtime Lending is Important to Nigerians
Airtime and data lending are high-margin businesses for telcos, since they keep the interest on advances while incurring little to no procurement costs. Airtime credit is also critical for Nigeria’s credit-starved market, where increased telecom tariffs have pushed up the cost of staying online.
What Customers Can Still Do
Both MTN Nigeria and Airtel Nigeria confirmed that customers can still purchase airtime and bundles through standard channels. The suspension only affects the ability to borrow airtime or data when accounts run out of credit.
“Airtel Nigeria remains committed to the highest standards of compliance, transparency, and consumer protection, while continuing to innovate responsibly within Nigeria’s digital ecosystem,” said Ismail Adeshina, the company’s director of marketing.
Other Operators Yet To Announce
Other telecom operators operating in Nigeria, including Globacom and 9mobile, are yet to announce similar moves. Both MTN Nigeria and Airtel Nigeria said the suspension is temporary and services will resume once they meet regulatory requirements.
