The biggest telecom operators are hitting pause on one of their most popular services, airtime and data loans as they adjust to stricter consumer lending rules.
MTN Nigeria suspended its Xtratime service on Thursday, with Airtel Nigeria following a day later. Both companies say the move is temporary and aimed at aligning with new regulatory requirements, while customers can still buy airtime and data through regular channels.
The shift is tied to new guidelines introduced by the Federal Competition and Consumer Protection Commission under the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025. These rules now bring airtime and data advances under formal lending oversight, requiring providers to obtain licences, disclose their lending models, and meet stricter compliance standards before continuing such services.
MTN confirmed the suspension in a regulatory filing, noting it is implementing processes required under the new framework. Airtel, in a separate statement, emphasized its commitment to compliance, transparency, and responsible innovation.
However, the FCCPC has clarified that it did not order the suspension of airtime lending. According to the regulator, the disruption stems from operators failing to meet compliance deadlines, not from any outright ban. Telcos were initially given 90 days to comply in 2025, with the deadline later extended to January 5, 2026.
The rules were introduced after a surge in consumer complaints across digital lending platforms, ranging from hidden charges and unclear deductions to aggressive recovery tactics and poor disclosure practices. Regulators say the new framework is designed to clean up the space improving transparency, protecting consumers, and opening the market to more competition.
To continue offering airtime credit, telecom providers must now formally apply to the FCCPC, submit detailed corporate and ownership information, and fully disclose how their lending products work including fees, interest rates, and default terms. They are also required to meet data protection standards and formalize partnerships with banks or fintech firms through service-level agreements.
While often overlooked, airtime lending is a significant revenue driver for telcos. In 2025, MTN Nigeria reported ₦191.3 billion in fintech revenue, with a large share coming from airtime lending and other value-added services. For Airtel, similar services fall under its “other” revenue category, which continues to grow alongside its core voice and data business.
These services are especially lucrative because they carry high margins telcos earn interest on small, short-term advances with minimal cost. At the same time, they play a critical role for millions of Nigerians who rely on quick credit to stay connected, especially as telecom tariffs rise.
For now, the pause remains temporary. Both MTN and Airtel say airtime lending will return once they meet the new compliance requirements, but the episode highlights a broader shift: even everyday telecom services are now being pulled deeper into Nigeria’s tightening digital finance regulations.