Key points
- MTN halts airtime and data lending service “Xtratime” over new FCCPC rules.
- Regulation introduces licensing framework for digital credit providers.
- Company says suspension will not significantly impact revenue.
Main story
MTN Nigeria Communications Plc has temporarily suspended its airtime and data lending service, “Xtratime,” following the introduction of new regulations by the Federal Competition and Consumer Protection Commission.
The telecom operator disclosed this in a filing to the Nigerian Exchange Limited on Thursday, stating that the move was necessary to comply with the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.
According to the company, the new framework establishes a compliance and licensing regime for providers of digital credit services, including telecom operators offering airtime and data loans.
In the disclosure signed by Company Secretary, Uto Ukpanah, MTN explained that Xtratime allows eligible prepaid subscribers to borrow airtime or data and repay on their next recharge.
The company assured customers that other digital channels for purchasing airtime and data would remain operational during the suspension.
The issues
The suspension highlights increasing regulatory scrutiny of Nigeria’s digital lending space, particularly concerns around consumer protection, transparency, and fair lending practices.
The FCCPC’s new regulations aim to bring all digital lenders under a unified framework, addressing issues such as data privacy, hidden charges, and abusive recovery practices.
What’s being said
MTN Nigeria Communications Plc said the suspension is temporary and part of efforts to align with regulatory requirements.
“This relates to the implementation of processes under the… Consumer Lending Regulations, 2025,” the company stated.
It added that the halt is not expected to materially affect its earnings, given the service’s limited contribution to overall revenue.
Earlier, the Chief Executive Officer of the Federal Competition and Consumer Protection Commission, Tunji Bello, warned that operators failing to comply with registration requirements could face penalties, including fines of up to ₦100 million.
What’s next
MTN is expected to complete the necessary compliance and licensing processes before restoring the Xtratime service.
Other telecom operators and digital lenders may also adjust their operations to meet the FCCPC’s regulatory requirements.
The Commission is likely to intensify enforcement as the extended compliance deadline approaches.
Bottom line
MTN’s suspension of Xtratime reflects the growing impact of regulatory reforms in Nigeria’s digital lending sector. While aimed at protecting consumers, the new rules are forcing operators to recalibrate services to meet stricter compliance standards.
