MTN, Airtel Suspend Airtime, Data Lending: Why FCCPC's New Lending Rule Affects You
- Nigerian telecoms MTN and Airtel suspend airtime and data borrowing due to new regulatory requirements
- FCCPC denies banning lending but insists operators must comply with new consumer lending rules
- Nigerians call for a review of regulations impacting critical airtime and data lending services
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian telecom subscribers are facing another tough regulation that could see them stop borrowing airtime and data from their preferred network operators.
On Thursday and Friday last week, Nigeria’s leading telecom operators, MTN Nigeria and Airtel Nigeria, announced the suspension of their long-standing airtime and data lending policies.
Source: UGC
Why MTN and Airtel suspended airtime, data borrowing
The operators temporarily suspended airtime and loan services as new consumer lending forced them into compliance.
According to reports, MTN suspended its airtime and data lending product, Xtratime, while Airtel Nigeria followed suit, citing the need to align with the new requirements.
The telcos disclosed that consumers can still purchase airtime and bundles via standard channels and platforms.
According to a report by TechCabal, Nigerian telecom providers are reviewing the new lending rules by the Federal Competition and Consumer Protection Commission (FCCPC) passed in July 2025.
FCCPC denies ban on airtime, data lending
The new rules apply to any entity involved in the provision, facilitation, or administration of digital or non-traditional consumer lending, which brings airtime and data advances into the scope, requiring operators to obtain licences to meet the requirement before continuing the service.
FCCPC has denied banning airtime and data borrowing in Nigeria.
Airtel disclosed its commitment to the highest standards of compliance, transparency, and consumer protection, stating it will continue to innovate responsibly in Nigeria’s digital landscape.
FCCPC disclosed that it framed disruptions as a consequence of operators’ failure to comply with existing rules within the stipulated timeframe.
It said the new rules apply to entities involved in digital consumer lending, including services tied to repayable monetary value.
The rule reportedly affects products such as MTN’s Xtratime.
FCCPC reveals reasons for new lending rules
The consumer watchdog said the rules were introduced due to a deluge of consumer complaints involving opaque charges, unexplained deductions, aggressive recovery practices, and poor disclosure standards across lending platforms.
According to the consumer watchdog, affected digital lending operators, including telcos, were initially given a 90-day compliance window in 2025, later extended to January 5, 2026, yet the relevant operators failed to meet the necessary compliance procedures.
“Any temporary suspension, restriction, or operational change introduced by service providers, including telcos, should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC, the commission said.
FCCPC said securing approval under the framework requires providers to apply to the commission to submit corporate and ownership documents and disclose their lending models, including interest rates, charges, and default charges.
Nigerians seek exemptions for telcos from new rule
It said applicants must also show all digital lending applications and interfaces used to issue credit, and provide proof that these systems met data protection and security standards under Nigerian law.
The rules further require formal consumer lending or service-level agreements (SLAs) for any partnerships with banks or fintechs.
The FCCPC charges approval and renewal fees under the regulations, including an additional ₦500,000 ($372) for each lending application beyond the initial five permitted under a single approval.
Source: Getty Images
Nigerians say that while the new rule tightens Nigeria’s chaotic and crude lending space, the inclusion of airtime and data lending, critical lifelines for telecom consumers, should be reviewed.
FCCPC cracks down on loan apps
Legit.ng earlier reported that Nigeria’s digital lending industry has entered a new era of accountability as the Federal Competition and Consumer Protection Commission (FCCPC) rolled out stricter regulations to curb abuse and protect consumers.
The Digital, Electronic, Online, or Non-Traditional (DEON) Consumer Lending Regulations 2025 officially took effect on July 21, 2025, with full enforcement kicking in from January 2026.
The new framework targets long-standing issues in the sector, including harassment by loan apps, data privacy violations, and predatory lending practices.
Source: Legit.ng
