MTN Nigeria, the country's largest telecommunications operator, has temporarily suspended its popular 'Xtratime' airtime and data lending services. This decision comes in direct response to the new regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
The FCCPC's Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, established a new compliance and licensing framework for companies offering digital or non-traditional consumer credit services in Nigeria. MTN disclosed this suspension in a corporate statement released on Thursday.
In its disclosure, signed by Company Secretary Uto Ukpanah, MTN explained that 'Xtratime' allows eligible subscribers to borrow airtime or data, repaying upon their next recharge. This service is widely used among prepaid subscribers.
MTN assured investors that the temporary halt is not anticipated to significantly affect its earnings. The company stated, “Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact.”
Meanwhile, a separate development saw the Federal High Court in Lagos temporarily halt the FCCPC's enforcement of key provisions of the same Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025. This interim order was granted on Wednesday following an ex parte application filed by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria).
The court, presided over by Justice Ambrose Lewis-Allagoa, restrained the FCCPC from enforcing specific provisions of the regulations, including paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29, and 32. The judge also barred the commission from taking actions that could interfere with members of WASPA Nigeria continuing to provide services governed by the regulations, or from imposing sanctions for non-compliance.
WASPA Nigeria initiated its legal action to challenge the regulations and the FCCPC's authority, arguing that the powers to regulate aspects of the telecommunications sector affected by these rules are vested in the Nigerian Communications Commission (NCC). The association contended that the FCCPC's actions create a parallel regulatory regime.
The FCCPC had intended to enforce the regulations, which were introduced to curb predatory practices and ensure stability in Nigeria's fintech sector. These regulations mandate formal licensing, adherence to interest rate caps, and transparent disclosure protocols for digital lenders. The court has adjourned the matter until April 27 for the hearing of the motion on notice.
MTN Nigeria stated that customers can continue to access other digital channels for purchasing airtime and data during the suspension of 'Xtratime'. The company is monitoring customer behaviour and usage trends and will provide further details on any measurable impact in its first quarter 2026 results.
