MTN ties XtraTime restoration to a “clear court order” or FCCPC compliance

MTN Nigeria says its XtraTime service will be restored once it complies with the Federal Competition and Consumer Protection Commission’s (FCCPC) regulatory provisions for data lending.

While responding to questions during the company’s Q1 2026 earnings presentation, Tobechukwu Okigbo, MTN Nigeria’s Corporate Services and Sustainability Officer, noted that the XtraTime service can only be restored after compliance with FCCPC regulations. 

Alternatively, he mentioned that the service can also be restored, provided there’s a court ruling that removes FCCPC from regulating telcos’ digital lending services.

The response came amid a court action filed by Nairtime Nigeria Ltd, a subsidiary of global AI-powered financial infrastructure group Optasia. The court, in its ruling, directed MTN and other telcos to restore XtraTime services. 

The ruling, made by the Federal High Court, Abuja Judicial Division, on April 24, came days after telcos suspended the voice and data lending services. 

Optasia, based in South Africa, provides an infrastructure layer that connects mobile network operators and banks to millions of underserved customers. With its global partnerships with 50 distribution partners and 17 financial institutions, including some of Africa’s largest telcos, the platform leverages proprietary AI to process swift credit decisions.

Why did MTN not obey the court order?

Providing context on why MTN didn’t comply with the Court ruling, Tobe noted that the interim injunction came ten days after the voice and data lending service had already been suspended. 

“There is a court order that was obtained against MTN, which states that the XtraTime service should not have been stopped. However, that order was issued approximately ten days after the service had already been suspended,” he said. 

As MTN suspended its XtraTime service following the need to comply with FCCPC’s digital lending rule, Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON), it restated that it can only restore the service once compliance with the rule is made. 

Laying more emphasis on the court order’s lapses, Tobe explained that the order came after the XtraTime service had already been removed based on FCCPC’s guidelines. 

“While the subsequent order indicates that the service should not be removed, it was obtained after the fact and without informing the court that the service had already been suspended.”

“As a result, the order does not provide a practical basis for reinstatement, as it requires an action that is no longer applicable,” he said. 

Also Read: MTN, Airtel, Glo to lose over N300bn revenue as FCCPC approves new airtime and data lenders.

MTN explores alternative digital lending providers 

Amid the temporary break in the digital lending services, MTN noted that it’s working to onboard more vendors after the FCCPC licensed a number of providers, thereby creating options. 

“We are exploring these alternatives to diversify and reduce reliance on a single provider going forward,” said Karl Toriola, MTN Nigeria CEO.

Recall that in April, the commission approved five firms as digital lender providers. The vendors include Total Tim Nigeria Limited, Rane Interactive Medien CLS Limited, Mode NG Applications Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited.

While the telcos’ XtraTime market is valued at an annual revenue of N400 billion, MTN Nigeria maintained that the suspension is not expected to have any “material financial impact” on its earnings. 

With the suspension still in place, customers continue to pay off their outstanding balances. The impact will be reflected in its Q2 2026 earnings result, according to MTN.