By Epiphanus Obia
MTN Nigeria has suspended its airtime and data lending services, including XtraTime, following new regulatory requirements that classify such offerings as digital credit products.
The move comes in response to the Digital Consumer Lending Regulations 2025 introduced by the Federal Competition and Consumer Protection Commission (FCCPC), which expand oversight to cover all platforms providing credit services, including telecommunications operators.
Under the new rules, services that allow users to borrow airtime or data are now treated as formal credit products, subjecting them to stricter licensing, transparency and consumer protection requirements.
As a result, MTN said it has temporarily paused the services to ensure compliance with the updated regulatory framework and avoid potential sanctions.
To resume the offering, operators are required to obtain digital lending licences, meet disclosure standards on fees and repayment terms, and adhere to fair lending and data protection guidelines.
The suspension follows a broader regulatory push to clean up Nigeria’s digital lending space, where authorities have in recent years sanctioned several loan platforms over complaints of data misuse, harassment of borrowers and excessive interest charges.
The FCCPC, working with the Central Bank of Nigeria, has tightened registration requirements and increased scrutiny of digital lenders, extending the scope in 2025 to include non-traditional providers such as telecom companies.
While MTN has not indicated when the service will resume, the company is expected to reintroduce the product once it meets the new regulatory conditions.
Industry observers say the changes could reshape airtime lending in Nigeria, potentially leading to more structured micro-credit offerings and closer collaboration between telecom operators and licensed financial service providers.
Although the service is widely used, airtime lending is not a primary revenue source for MTN, whose earnings are largely driven by data, voice and enterprise services. However, the suspension could affect user behaviour, particularly among customers who rely on borrowed airtime during periods of low cash availability.
The development signals a shift in how informal credit services are treated in Nigeria’s digital economy, as regulators move to standardise practices across banks, fintech firms and telecom operators.