MTN Nigeria, the country’s largest telecoms operator, has suspended its airtime and data lending service known as “Xtratime” as new regulatory requirements under Nigeria’s expanded digital credit rules take effect.
The company said the temporary suspension was driven by compliance obligations under the Federal Competition and Consumer Protection Commission’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduce a revised licensing and oversight framework for providers of digital credit services.
MTN disclosed the decision in a corporate filing to the Nigerian Exchange Limited on Thursday, noting that Xtratime, which allows prepaid subscribers to borrow airtime or data and repay on their next recharge, would remain unavailable while the company aligns with the new requirements.
In the disclosure signed by its Company Secretary, Uto Ukpanah, MTN said the service falls within the scope of the updated regulations and therefore 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 said.
It added that the suspension relates to “the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new compliance and licensing framework for entities providing digital or non-traditional consumer credit services”.
Despite the suspension, MTN said customers would continue to access other channels for purchasing airtime and data and stressed that the decision is not expected to materially affect 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 was monitoring customer behaviour and usage patterns and would provide updates in its first-quarter 2026 results.
The suspension highlights the widening scope of Nigeria’s consumer lending regulation, which now extends beyond traditional financial institutions to include telecoms operators and other providers of short-term digital credit.
The FCCPC had previously introduced a limited regulatory framework for digital lending in 2022 but escalated its oversight with the 2025 regulations, which require all operators in the sector to register and obtain approval to continue offering services.
Under the rules, companies providing non-traditional credit services, including airtime and data advances, are required to comply with licensing conditions as part of efforts to improve transparency, consumer protection, and data governance in the rapidly growing digital lending space.
The commission has also set transitional deadlines for operators already providing such services, with a compliance window extended to April 2026 for full registration under the new framework.
The regulatory tightening reflects broader concerns around consumer debt exposure, data privacy, and aggressive lending practices in Nigeria’s fast-expanding digital credit market, which has seen rapid growth in recent years alongside mobile penetration.
For telecom operators, the changes introduce a new layer of compliance in services that have become a key feature of prepaid mobile offerings, particularly for low-income users who rely on short-term airtime advances to stay connected.
MTN said it would continue to monitor developments under the new framework as it works toward full compliance before resuming the service.
