MTN Suspends Xtratime Credit Service to Align with New Lending Rules

MTN Suspends Xtratime Credit Service to Align with New Lending Rules

JOEL OLADELE, Abuja

MTN Nigeria has temporarily suspended its airtime and data advance service, Xtratime, as the telecom operator moves to comply with new regulatory requirements governing digital lending in the country.

The company disclosed the development in a notice filed with the Nigerian Exchange (NGX) on Thursday, explaining that the decision was necessitated by the implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

Xtratime, a widely used service that allows subscribers to borrow airtime or data and repay on their next recharge, has long served as a financial cushion for millions of Nigerians during periods of low balance or cash constraints.

In the regulatory filing signed by the Company Secretary, Uto Ukpanah, MTN said the suspension was temporary and aimed at ensuring full alignment with the new legal framework for digital credit services.

“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 notice stated.

It added that the move was connected to compliance processes under the new lending regime, which introduced stricter licensing and operational requirements for all entities providing digital or non-traditional consumer credit services.

Despite the suspension, MTN assured customers that access to airtime and data purchase channels remains unaffected. Subscribers can still recharge through banking applications, USSD codes, and other approved digital platforms.

The company also sought to calm investor concerns, noting that the suspended service contributes only marginally to its overall revenue structure.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” MTN said, adding that it is monitoring user behaviour and will provide updates in its first quarter 2026 financial report.

The suspension comes as regulators intensify oversight of Nigeria’s fast-growing digital lending ecosystem, which has expanded rapidly alongside mobile money and telecom-based credit services.

The Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, which took effect in 2025, were introduced to ensure transparency, consumer protection, and proper licensing of operators in the sector.

The Federal Competition and Consumer Protection Commission (FCCPC) has also set deadlines for full compliance as part of efforts to curb abusive lending practices and improve accountability.

MTN’s decision reflects increasing regulatory pressure on telecoms and fintech firms to restructure credit-based offerings in line with evolving financial laws.