Subscribers with existing airtime and data loans will continue to repay their debts during the suspension.
According to an insider at a leading Nigerian telecom company, subscribers will continue to service their existing debts through recharges, while new users will not be able to access the service due to the ongoing suspension.
Recall that telecom operators such as MTN and Airtel announced a temporary suspension of the XtraTime service on Thursday and Friday, respectively.
The development comes in light of the need to comply with the new Federal Competition and Consumer Protection Commission’s (FCCPC) digital lending framework; Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON).
The sudden halt in the XtraTime service was unexpected and came as a shock to subscribers who rely on borrowing airtime and data during financial difficulties.
However, concerns remain about how indebted customers will be affected.
As customers will no longer access the XtraTime service for a while, the suspension period provides ample time for debtors to clear their outstanding balances.
Also Read: MTN Nigeria pauses airtime and data borrowing to comply with new digital lending requirements.
Xtratime suspension: FCCPC’s clarification on DEON
Following the halt of XtraTime service, FCCPC clarified issues surrounding the development. In the statement released on Friday, the Commission disregarded claims that it triggered the telcos to take action.
According to the Federal Competition and Consumer Protection Commission, digital lenders, including telcos, were provided sufficient time to comply with the new framework in adjusting their operations. However, some operators did not meet the stipulated deadlines.
The commission added that any suspension imposed by telcos on the airtime and data borrowing service in compliance with DEON is a decision by operators and not a ban imposed by the commission.
In further clarification on what the framework seeks to address, FCCPC said DEON is deployed to cater for various consumer complaints of unexplained deductions, unfair practices, aggressive recovery models, and poor disclosure standards.
In addition, the framework forms an attempt to make operators accountable for their actions, restore transparency, ensure clear justifications, and promote responsible lending.
While telcos are yet to disclose when the suspension will be lifted, they are expected to reorganise their digital lending operations and align with the requirements contained in DEON.
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