MTN Nigeria pauses airtime and data borrowing to comply with new digital lending requirements

MTN Nigeria has temporarily suspended its Xtratime service, which allows subscribers to borrow airtime or data and pay back later.

According to a disclosure on Thursday via the Nigerian Exchange (NGX), MTN Nigeria said the adjustment comes amid the need to comply with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON), which guides digital lending services such as airtime credit, loan apps, and BNPL.

“This relates 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,” part of the statement reads.

While the XtraTime service has been suspended, MTN noted that normal voice and data purchases are available across different platforms such as USSD, bank, mobile apps and POS agents.

MTN stressed that pausing the airtime and data lending service will not impact its revenue performance as the service is not a major revenue driver.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” it added. 

However, MTN is still waiting for the data before making conclusions. It also noted that its team will continue monitoring how customers react to the development and any usage drops or changes. 

Also, the actual effect of the XtraTime service suspension will be revealed later, specifically in their Q1 2026 financial results.

MTN did not disclose when it will lift the suspension. 

The digital lending policy affecting MTN

The DEON, effective July 21, 2025, forms the Federal Competition and Consumer Protection Commission’s (FCCPC) comprehensive framework to combat predatory lending and protect consumer data. Key requirements include mandatory registration for digital lenders, transparent loan terms, ethical debt collection, and the prohibition of automatic loans.

The rule requires companies offering digital lending services to get proper licenses, follow stricter compliance standards and perhaps reframe how they assess and recover credit.

As contained in DEON, lenders are restricted from engaging in unethical debt recovery methods, such as harassing contacts, and must comply strictly with data privacy regulations.

While MTN Nigeria is pausing XtraTime services to adjust to the new regulation, FCCPC has witnessed a setback in the DEON’s implementation.

On Wednesday, a federal high court in Lagos temporarily blocked the commission from enforcing parts of the rule after they were challenged by Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), an industry group.

The pressure group maintained that part of the DEON’s provision would negatively affect its members and needed to be challenged in court.

Read More: Court stops FCCPC from enforcing 2025 digital lending rules.