MTN Nigeria has suspended its popular airtime and data advance service, known as Xtratime, following new regulatory requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
The telecom company announced the decision in a filing to the Nigerian Exchange Limited on Thursday, stating that the move is temporary and aimed at ensuring full compliance with the FCCPC’s new rules governing digital lending.
Xtratime is a widely used service that allows prepaid subscribers to borrow airtime or data when they run out of credit, with repayment made during their next recharge. Over the years, the service has become popular among millions of Nigerians who rely on it for emergency communication and internet access.
However, under the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, services like Xtratime are now classified as digital credit offerings. This means providers must meet stricter requirements, including registration, licensing, and compliance with consumer protection standards.
In its disclosure, signed by the Company Secretary, Uto Ukpanah, MTN said the suspension is necessary to allow the company align its operations with the new regulatory framework.
“MTN Nigeria Communications Plc hereby notifies the Nigerian Exchange Limited and the investing public that the company has temporarily suspended its airtime and data credit advance service, Xtratime,” the statement read.
The company explained that the decision is linked to “the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025,” which introduced new compliance and licensing requirements for businesses offering digital credit services.
Despite the suspension, MTN assured customers that other services remain available. Subscribers can still purchase airtime and data through regular channels, including recharge cards, bank apps, and digital platforms.
MTN also downplayed the financial impact of the decision, stating that the Xtratime service contributes only a small portion to its overall revenue.
“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said.
It added that it is closely monitoring customer behaviour and usage patterns during the suspension period and will provide further updates in its first quarter 2026 financial results.
The new FCCPC regulations represent a major shift in how digital lending is managed in Nigeria. Initially introduced in 2022, the framework was designed to address rising concerns about the activities of digital lenders, especially issues related to high interest rates, harassment of borrowers, and misuse of personal data.
Over time, the digital lending space in Nigeria has grown rapidly, driven by increased mobile phone use, internet access, and demand for quick loans. Many Nigerians, especially those without access to traditional banking services, have turned to digital platforms for short-term credit.
However, the sector has also faced criticism due to unethical practices by some operators. Reports of lenders sending threatening messages, accessing contact lists, and publicly shaming borrowers have raised alarm among regulators and the public.
In response, the FCCPC expanded its rules in 2025 to cover more types of credit services, including those offered by telecom companies. This brought services like airtime and data advances under closer scrutiny.
Under the updated regulations, all providers of digital or non-traditional consumer credit must register with the FCCPC and obtain approval before continuing operations. They are also required to follow strict guidelines on transparency, fair lending practices, and data protection.
The commission has set transitional deadlines for compliance, with full registration expected by April 2026. Companies that fail to meet these requirements risk penalties or being shut down.
For many Nigerians, services like Xtratime serve as a safety net, especially during emergencies or when access to cash is limited. The temporary suspension may therefore affect users who depend on such options for communication and business activities.
At the same time, analysts believe the stricter regulations could help clean up the sector and protect consumers from abuse. By enforcing proper licensing and oversight, the FCCPC aims to ensure that all providers operate within clear rules that safeguard users’ rights.
The move also highlights the balancing act between innovation and regulation. While digital credit services have improved access to finance, they also raise concerns about debt management and consumer protection.
Nigeria’s telecom sector, led by major operators like MTN, plays a key role in supporting digital services across the country. With millions of subscribers, telecom companies are increasingly offering services beyond calls and data, including financial and credit products.
The suspension of Xtratime shows how regulatory changes can quickly affect these offerings. It also signals that telecom companies must adapt to evolving rules as they expand into new areas.
For now, MTN customers will have to rely on alternative methods to stay connected. The company has not announced when the Xtratime service will resume but indicated that it is working to meet all regulatory requirements as soon as possible.
As the April 2026 compliance deadline approaches, other companies offering similar services may also review their operations to ensure they meet the new standards.
The development marks another step in Nigeria’s efforts to regulate its fast-growing digital economy. While it may cause short-term inconvenience for users, authorities say the long-term goal is to create a safer and more transparent system for all.
For millions of Nigerians who depend on mobile services daily, the outcome of these regulatory changes will shape how digital credit is accessed and used in the years ahead.