MTN halts xtratime, data borrowing service over new FCCPC lending rules

MTN Nigeria has temporarily suspended its airtime and data advance service, Xtratime, as it moves to comply with new consumer lending regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

The FCCPC’s DEON 2025 rules expanded digital lending oversight and set a final April 2026 regularisation window for eligible operators.

The telecoms giant disclosed the development in a filing to the Nigerian Exchange Limited on Thursday, explaining that the pause is tied to fresh licensing and compliance requirements under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

Xtratime, one of MTN’s popular prepaid services, allows subscribers to borrow airtime or data and repay automatically during their next recharge.

In the notice signed by Company Secretary Uto Ukpanah, MTN said the service now falls within the scope of the FCCPC’s updated framework for providers of digital and short-term consumer credit.

The company said the temporary suspension would allow it to complete the processes required under the new regulatory regime and align the service with the commission’s compliance standards.

Despite the suspension, MTN assured customers that regular airtime and data purchase channels remain fully available.

The operator also told investors that the development is not expected to significantly affect its earnings, noting that the service contributes only a small portion of its overall revenue mix.

According to MTN, customer usage trends and behavioural changes arising from the pause are being closely monitored, with further updates expected in its first-quarter 2026 financial results.

The FCCPC’s revised 2025 framework widened regulation of digital lending to cover telecom operators and other providers of non-traditional short-term credit products, reflecting growing concerns around consumer debt exposure, data privacy, and lending practices.

Under the rules, companies offering airtime and data borrowing services are now required to obtain regulatory approval and complete formal registration before continuing operations.

The move marks another tightening of oversight in Nigeria’s fast-growing digital credit ecosystem, where regulators are pushing for stronger consumer protection and greater market discipline.