MTN Nigeria is moving to restore its Xtratime airtime lending service following a regulatory pause triggered by changes in Nigeria’s consumer lending rules.
The telecom giant is now preparing to reactivate the service after the Federal Competition and Consumer Protection Commission (FCCPC) temporarily suspended enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON 2025).
The suspension effectively reopened the door for the service’s return. “The FCCPC has suspended the enforcement of DEON. To that extent, we will reinstate the service,” the source said.
MTN’s latest position marks a shift from comments made during its May 4 earnings call, when executives suggested the company would not automatically resume airtime lending even if enforcement was paused. At the time, MTN argued that only a clear legal directive or a court ruling overturning the rules would justify restarting the service.
“In terms of what needs to happen for us to resume airtime advance service, there are essentially two conditions,” said Tobechukwu Okigbo, MTN Nigeria’s chief corporate services and sustainability officer. “Either a court ruling setting aside the regulations, or a clear directive instructing us to reinstate the service.”
However, the company’s stance appears to have softened after the FCCPC announced the suspension of enforcement on May 22, following an interim order from the Federal High Court in Lagos tied to a lawsuit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN).
The development has already seen competitors act faster. Airtel Africa and Globacom have both resumed airtime lending services during the regulatory pause.
MTN’s Xtratime allows customers to borrow airtime or data and repay on their next recharge, a product that sits at the intersection of telecom services and consumer credit. It also generates fees for the company and influences how customers spend on voice and data.
Despite the disruption, MTN says the short suspension had limited long-term impact on usage patterns. “There was a short-term impact on consumption patterns, which lasted only a few days,” said MTN Nigeria CEO Karl Toriola. “Customers adapted. They either shifted to self-funded usage or found alternative ways to manage short-term needs.”
According to the company, fees from Xtratime account for about 3% of revenue, while related airtime and data usage represents a low-20% share of total distribution.
MTN Nigeria posted ₦5.2 trillion ($3.77 billion) in revenue in 2025 and is projecting at least ₦6.24 trillion ($4.52 billion) in 2026. The company maintains that even without Xtratime, overall revenue and consumption trends are expected to stabilise over time.
In its Q1 2026 report, MTN also noted that it is still onboarding approved partners and expects the service to fully resume once the process is completed.
While Xtratime remains a useful driver of customer engagement and short-term spending behaviour, MTN’s broader message to investors is clear: the business is not dependent on it, even as it works to bring it back.