MTN Nigeria has paused its Xtratime service nationwide. This follows new rules issued by the Federal Competition and Consumer Protection Commission (FCCPC) governing digital lending.
The company disclosed the move in a filing to the Nigerian Exchange Limited on Thursday. The pause took effect immediately as compliance reviews began.
Xtratime allows prepaid users to borrow airtime or data. Customers repay the loan during their next recharge cycle, making it a widely used service across Nigeria.
“The service has been temporarily suspended to ensure full compliance with the new regulatory framework,” MTN said in the filing signed by Company Secretary Uto Ukpanah.
Meanwhile, the telecom firm confirmed that other recharge options remain active. Customers can still buy airtime and data through regular channels.
“Alternative channels for purchasing airtime and data remain fully operational,” the company added.
The suspension follows the FCCPC’s Digital Lending Regulations 2025. These rules now apply to telecom operators offering credit-like services.
“All digital lenders must meet licensing and compliance requirements,” the commission stated in its regulatory update.
New Lending Rules Reshape Telecom Services
The FCCPC first introduced lending oversight in 2022. However, the updated 2025 framework expands control over digital credit providers.
It requires operators to register and meet strict standards. These include data protection, transparency, and fair recovery practices for borrowers.
“The framework introduces stricter compliance and licensing requirements,” MTN stated, explaining the reason behind the pause.
Deadlines for registration were extended multiple times. The final compliance window now runs into April 2026.
Meanwhile, non-compliant firms risk penalties. These include fines of up to ₦100 million and possible regulatory sanctions.
“Operators that fail to regularise their status will face enforcement actions,” FCCPC CEO Tunji Bello had warned earlier.
The pause may imply a fundamental shift in Nigeria’s fintech ecosystem. Authorities are tightening control over digital lending due to past consumer complaints.
Minimal Revenue Impact but Major User Effect
MTN downplayed the financial impact of the suspension. The company said Xtratime contributes only a small portion of its total earnings.
“Given the scale within the revenue mix, we do not expect a material impact,” MTN explained in its filing.
However, the effect on users may be more significant. Millions rely on Xtratime during low-balance periods to stay connected.
Meanwhile, MTN said it will monitor customer behaviour during the suspension. The company plans to share updates in its Q1 2026 financial results.
The development also signals tighter rules ahead for telecom-based credit. Services that once operated as simple add-ons now face full financial regulation.
The new framework will protect consumers and improve accountability across the sector.
“The regulations are designed to strengthen oversight of digital lending services,” the report stated.
Consequently, telecom operators must now adapt quickly. Compliance could reshape how airtime lending works in Nigeria going forward.
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