MTN Halts Airtime, Data Loans to Meet New FCCPC Rules

MTN Nigeria has temporarily halted its airtime and data advance service, “Xtratime”, following new regulatory requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

The telecom operator disclosed the development in a filing to the Nigerian Exchange Limited on Thursday, explaining that the move is aimed at ensuring compliance with the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

Xtratime allows prepaid customers to borrow airtime or data and repay the balance on their next recharge. However, MTN noted that the service now falls within the scope of the updated regulations, which impose new licensing and compliance obligations on providers of digital credit services.

In a disclosure signed by company secretary Uto Ukpanah, the firm stated: “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’).”

MTN Explains Compliance Under FCCPC Lending Rules

The company further clarified that the suspension is tied to “the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new compliance and licensing framework for entities providing digital or non-traditional consumer credit services”.

Despite the pause, MTN assured subscribers that alternative channels for purchasing airtime and data remain fully operational. It also emphasized that the suspension is not expected to significantly impact its financial performance.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said, adding that it is closely monitoring customer usage patterns and will provide further updates in its first-quarter 2026 results.

The FCCPC’s revised 2025 framework broadens regulatory oversight of digital lending to include telecom operators and other providers of short-term credit. Under the new rules, companies offering airtime and data advances must complete registration and secure approval before continuing such services.

While the commission initially introduced digital lending guidelines in 2022, the updated regulations significantly expand their scope with stricter compliance measures. Transitional deadlines have been set, with full registration required by April 2026.

The tighter regulatory environment reflects rising concerns over consumer debt exposure, data privacy, and lending practices within Nigeria’s fast-growing digital credit market.