Nigeria’s largest telecom operator has temporarily halted one of its widely used credit services following new regulatory requirements introduced for digital lending activities in the country.
MTN Nigeria Communications PLC has suspended its airtime and data advance service, known as “Xtratime,” after new compliance obligations under updated rules issued by the Federal Competition and Consumer Protection Commission (FCCPC).
The company disclosed the development in a filing to the Nigerian Exchange Limited on Thursday, explaining that the decision is linked to the implementation of the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.
The framework introduces stricter licensing and registration requirements for all entities involved in digital or alternative consumer credit services, a category that now includes telecom operators offering airtime and data loans.
Xtratime, which allows eligible prepaid customers to borrow airtime or data and repay on their next recharge, has become a popular short-term credit option for millions of subscribers across Nigeria. MTN noted that while the service is temporarily unavailable, customers will still be able to purchase airtime and data through other available channels.
In its disclosure signed by Company Secretary Uto Ukpanah, the company clarified that the suspension is a compliance-driven measure rather than a business exit from the service. It further assured investors that the impact on revenue is expected to be minimal, given the service’s proportion within its broader earnings mix.
The telecom giant also indicated that it is actively monitoring customer behaviour during the suspension period and will update stakeholders on any measurable effects in its upcoming first-quarter 2026 financial report.
The suspension comes amid a broader regulatory push by the FCCPC to formalize Nigeria’s fast-growing digital lending ecosystem. Building on earlier interim guidelines introduced in 2022, the Commission’s 2025 regulations require all digital lenders—including airtime credit providers—to register and obtain approval under a unified framework.
According to the regulator, operators that fail to comply within the stipulated transition period may face enforcement actions. While an earlier deadline was set for October 31, 2025, the Commission later extended full compliance to January 5, 2026, with transitional arrangements allowing eligible operators until April 2026 to complete registration.
FCCPC leadership has maintained that the reforms are aimed at improving consumer protection, transparency, and accountability within Nigeria’s expanding non-traditional credit market, which has seen rapid growth in recent years.
As regulatory expectations tighten, the temporary suspension of Xtratime highlights the growing intersection between telecommunications services and financial regulation in Nigeria’s digital economy.