MTN Nigeria Communications PLC has temporarily suspended its airtime and data lending service known as Xtratime as new regulatory requirements governing digital credit services take effect in the country.
The company announced the decision in a corporate filing to the Nigerian Exchange Limited on Thursday, stating that the move was necessary to comply with updated consumer lending regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
According to the telecom operator, the suspension is linked to compliance obligations under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which establish a revised licensing and oversight framework for providers of digital credit services.
The disclosure, signed by MTN’s Company Secretary, Uto Ukpanah, explained that the Xtratime service falls within the scope of the new regulations and requires additional compliance processes before it can resume.
“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 company stated.
Xtratime allows prepaid subscribers to borrow airtime or data and repay the credit during their next recharge, a feature widely used by customers needing short-term connectivity.
MTN clarified that the temporary halt would remain in place while it aligns its processes with the new regulatory framework.
Despite the suspension, the telecom company assured subscribers that they can continue purchasing airtime and data through its existing channels.
The company also indicated that the pause is unlikely to significantly affect its financial performance.
“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” MTN said, adding that it is monitoring customer behaviour and usage trends and will provide further updates in its first-quarter 2026 results.
The development highlights the expanding scope of consumer lending regulation in Nigeria, which now extends beyond banks and financial institutions to include telecom operators and other providers of short-term digital credit.
The FCCPC initially introduced a limited regulatory framework for digital lenders in 2022 but expanded its oversight with the 2025 regulations, requiring operators to register and obtain approval before offering such services.
Under the new rules, companies that provide non-traditional credit products — including airtime and data advances — must comply with licensing conditions aimed at strengthening transparency, consumer protection and data governance in the rapidly growing digital lending market.
The commission has also established transitional deadlines for existing service providers, giving them until April 2026 to complete registration and meet the new compliance standards.
Industry analysts say the tighter regulatory framework reflects growing concerns over consumer debt exposure, data privacy risks and aggressive lending practices in Nigeria’s expanding digital credit sector.
For telecom operators, the rules introduce additional compliance obligations for services that have become a core feature of prepaid mobile offerings, especially among low-income users who rely on short-term airtime advances to remain connected.
MTN said it will continue to monitor developments under the new framework as it works toward full compliance before restoring the Xtratime service.
