MTN suspends xtratime as Nigeria tightens digital credit laws

By: Amarachi Okonkwo

MTN Nigeria Communications PLC has temporarily suspended its popular airtime and data lending service, Xtratime, as it moves to comply with new regulatory requirements governing digital credit services in Nigeria.

The company disclosed the development in a corporate filing to the Nigerian Exchange Limited on Thursday, citing obligations under the 2025 Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

According to MTN, the suspension is part of efforts to align its operations with the updated compliance and licensing framework, which expands oversight of digital lending activities beyond traditional financial institutions to include telecom operators and other non-bank providers.

The filing, signed by Company Secretary Uto Ukpanah, confirmed that Xtratime falls within the scope of the new rules and will remain unavailable until the company completes all required regulatory processes.

“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 statement read.

Xtratime allows prepaid subscribers to borrow airtime or mobile data and repay on their next recharge, making it a widely used service among low-income users who rely on short-term connectivity solutions.

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Despite the suspension, MTN reassured customers that alternative channels for purchasing airtime and data remain fully operational. The telecom giant also downplayed the financial impact of the decision, noting that the service represents a relatively small portion of its overall revenue mix.

“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 would continue to monitor customer behaviour and provide updates in its first-quarter 2026 results.

The move underscores the FCCPC’s tightening grip on Nigeria’s rapidly expanding digital credit market. While the commission first introduced a limited framework for digital lenders in 2022, the 2025 regulations significantly broaden its scope, mandating registration and licensing for all providers of non-traditional consumer credit services, including airtime and data advances.

Under the new rules, operators must meet stricter standards around transparency, consumer protection, and data governance. A transition window has been granted, with existing providers required to achieve full compliance by April 2026.

Industry analysts say the expanded regulatory framework reflects growing concerns about rising consumer debt exposure, data privacy risks, and aggressive lending practices in the digital credit ecosystem.

For telecom operators, the changes introduce additional compliance layers to services that have become integral to prepaid mobile offerings, particularly in a market where mobile penetration continues to deepen.

MTN said it remains committed to meeting all regulatory requirements and will resume the Xtratime service once full compliance is achieved.