MTN Nigeria has temporarily suspended its airtime and data advance service, Xtratime, citing the need to align operations with new federal lending regulations that now classify such services as formal credit products subject to licensing requirements. The suspension, disclosed in a corporate filing to the Nigerian Exchange Limited on April 16, follows the implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which took effect April 12 and establishes a new compliance framework for entities providing digital consumer credit. Xtratime allowed eligible prepaid subscribers to borrow airtime or data and repay automatically upon their next recharge, a feature used by millions of Nigerians. Under the revised FCCPC framework, such advances are no longer treated as routine telecom value-added services but as regulated financial products requiring proper registration and oversight. In the filing signed by Company Secretary Uto Ukpanah, MTN emphasized that alternative digital channels for purchasing airtime and data remain fully operational during the suspension period. The company also moved to reassure investors, stating plainly: "Given the scale of Xtratime within the overall MTN Nigeria revenue mix, we do not expect the temporary suspension to have a material impact on financial performance". The FCCPC regulation builds on earlier 2022 guidelines aimed at sanitizing Nigeria's digital lending space amid concerns over predatory practices and consumer rights violations. Under the updated rules, all digital lenders, including telecom operators must register with the commission and meet specified transparency and compliance standards. The registration deadline was extended to April 2026 to allow operators to complete the process, with non-compliance attracting penalties of up to ₦100 million. MTN stated it is monitoring customer behavior and usage trends during the suspension and will provide quantified updates in its first-quarter 2026 financial results. The service is expected to resume once required approvals and regulatory alignment are secured. Separately, a Federal High Court in Lagos has issued an interim order restraining the FCCPC from enforcing the new lending regulations pending the determination of a substantive suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which challenges the commission's authority to regulate certain digital lending operations affecting telecommunications platforms.
Stay Informed: Visit our website for Breaking News, Intelligence, and Insight