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Nigeria’s largest telecommunications provider, MTN has temporarily stopped its Xtratime service, which allows customers to borrow airtime and data. The move comes after new government rules on digital lending took effect.
In an announcement to the Nigerian Exchange, MTN explained that the suspension is part of its effort to comply with updated regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
Xtratime was a popular option for prepaid users, letting them access airtime or data on credit and pay back when they next topped up their account. Under the new framework, such offerings are now considered part of digital or non-traditional consumer lending, which means telecom operators must obtain fresh licenses and meet stricter compliance standards.
MTN stated that the pause is necessary to put in place procedures required by the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025. These rules extend oversight to telecom companies that provide credit-based services.
The telco reassured customers that other ways to buy airtime and data are still available. It also said the temporary halt is not expected to hurt its financial results significantly, since Xtratime accounts for a relatively small portion of total revenue.
However, the development underscores increasing regulatory scrutiny of Nigeria’s digital lending space. Authorities are working to enhance consumer protections, boost transparency, and promote responsible lending among both traditional financial institutions and non-traditional credit providers.
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