MTN Nigeria is preparing to bring back its popular Xtratime airtime and data lending service after the Federal Competition and Consumer Protection Commission (FCCPC) suspended the enforcement of controversial digital lending regulations that had led to the product’s withdrawal.
A source familiar with the matter confirmed the development, saying the telecom giant is now moving to reactivate the service following the regulator’s latest decision.
“The Federal Competition and Consumer Protection Commission (FCCPC) has suspended the enforcement of DEON. To that extent, we will reinstate the service,” a company insider told TechCabal.
The move marks a notable shift from MTN’s earlier position. During its May 4 earnings call, company executives had maintained that a court order halting enforcement of the regulations did not automatically require operators to resume lending services. At the time, MTN argued that the judgment neither invalidated the regulations nor explicitly directed telecom companies to restore suspended products.
While MTN declined to officially comment on the latest development, industry observers see the decision as a response to the evolving regulatory landscape.
The company’s competitors, Airtel Nigeria and Globacom, have already restored their airtime lending services after the FCCPC paused implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025.
Xtratime allows MTN subscribers to borrow airtime or data and repay the amount through future recharges. Beyond offering convenience to customers facing temporary cash constraints, the service also generates additional revenue for the operator through lending fees and increased telecom usage.
Earlier, MTN had outlined specific conditions it believed were necessary before the service could return.
“In terms of what needs to happen for us to resume airtime advance service, there are essentially two conditions,” Tobechukwu Okigbo, MTN Nigeria’s Chief Corporate Services and Sustainability Officer, said during the earnings call.
“First, we would require either a court ruling that sets aside the regulations empowering the FCCPC to license, which has not happened, or a clear directive instructing us to reinstate the service.”
That position changed after the FCCPC announced on May 22 that it was suspending enforcement of the DEON Regulations. The regulator’s decision followed an interim order issued by the Federal High Court in Lagos on April 15 in a lawsuit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which represents value-added service providers in the country.
Despite preparing to restore Xtratime, MTN has repeatedly insisted that the product’s suspension did not significantly disrupt its business performance or customer spending habits.
According to the company, users adjusted quickly after the service was withdrawn.
“There was a short-term impact on consumption patterns, which lasted only a few days,” MTN Nigeria Chief Executive Officer Karl Toriola said during the earnings call.
“However, as time progressed, customers adapted. They either shifted to self-funded usage or found alternative ways to manage short-term needs.”
MTN disclosed that fees generated from Xtratime contribute approximately 3% of its overall revenue. The company also noted that airtime and data usage linked to the lending platform accounts for a little over 20% of total airtime distribution.
“This consumption is split across voice and data in line with the mix reflected in our revenue,” Toriola explained.
The telecom giant remains one of Nigeria’s strongest corporate earners. MTN generated ₦5.2 trillion in revenue during 2025 and projects earnings of at least ₦6.24 trillion in 2026.
Even with Xtratime's contribution to customer engagement and spending behaviour, MTN maintains that the service primarily influences payment timing rather than overall consumption levels.
“As we have said, we expect consumption patterns and top-line revenue to normalise to levels consistent with what we would see without Xtratime. That is why we do not expect any material impact on full-year performance,” Toriola said.
In its first-quarter 2026 earnings report, the company revealed that it had already begun onboarding approved providers and expected to relaunch the service once the process was completed.
MTN’s decision to restore Xtratime underscores the strategic importance of the product in Nigeria’s highly competitive telecom market. While management has assured investors that the business can withstand the service’s absence, its planned return suggests that Xtratime remains a valuable tool for driving customer loyalty, boosting usage, and strengthening the company’s fintech ambitions.