Banks Seize Airtime, Data Loan Market From MTN, Airtel as GTBank, FirstBank Offer Cheaper Rates
- Guaranty Trust Bank launches Quick Airtime Loan, offering interest rates as low as 2.95% for customers
- Telecoms' control over airtime lending wavers as new regulations empower banks to disrupt the market
- Lower borrowing costs promise financial relief for Nigerians, enhancing economic inclusion and everyday connectivity
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian banks are making an aggressive push into a market long dominated by telecommunications companies, taking over the lucrative airtime and data credit space with significantly cheaper lending rates and better repayment structures.
At the centre of this disruption is Guaranty Trust Bank (GTBank), which has launched its Quick Airtime Loan at just 2.95% interest, a sharp contrast to the 15% or more often charged by telcos like MTN Nigeria and Airtel Nigeria.
Source: Getty Images
The move is rapidly reshaping Nigeria’s estimated N400 billion airtime and data credit market, giving millions of customers access to cheaper borrowing and more transparent lending.
For many Nigerians, especially traders, students, artisans, and small business owners, airtime and data credit are not luxuries but daily necessities used for business, education, family communication, and emergencies.
GTBank leads the new lending battle
Guaranty Trust Bank Ltd, the flagship banking arm of GTCO Plc, officially introduced its Quick Airtime Loan to help customers stay connected when cash runs low.
Eligible customers can borrow between N100 and N10,000 instantly by dialling 73790#. The service works across all major mobile networks, and the bank has already indicated plans to expand into full data lending.
This positions GTBank as a one-stop platform for everyday connectivity financing.
Unlike traditional telco borrowing systems, repayment is automatically deducted from the customer’s next credit inflow, usually within seven days. Customers can also repay early without penalties.
The product runs on GTBank’s widely used *737# USSD platform, making it accessible even to users with basic phones and no internet connection.
GTBank’s Managing Director, Miriam Olusanya, said the initiative reflects the bank’s commitment to practical digital solutions.
She explained that the service combines GTBank’s lending expertise with the technology capabilities of HabariPay to deliver a smoother customer experience across financial and digital channels.
Why telcos are losing control
For years, telecom operators controlled airtime lending through services such as MTN XtraTime and Airtel Extra Credit, which became lifelines for millions of Nigerians.
However, the introduction of the Federal Competition and Consumer Protection Commission (FCCPC)’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 changed everything.
The new rules reclassified airtime and data advances as formal lending, requiring stricter licensing, stronger consumer protection standards, and full regulatory compliance.
In April 2026, major operators, including MTN and Airtel, suspended several of their borrowing services following regulatory pressure, leaving many subscribers stranded.
Although some operators secured temporary court relief, the disruption created a major opportunity for banks to step in and dominate the space.
FirstBank, FCMB join the race
GTBank is not alone in the new battle.
According to a BusinessDay report, First Bank of Nigeria has strengthened its airtime credit offering through its *894# USSD banking platform, allowing customers to borrow quickly when funds are low.
First City Monument Bank (FCMB) also offers Airtime Advance through 32911#, giving customers fast access to call credit without needing a smartphone or internet access.
These bank-led services are proving more attractive because they are often cheaper, more transparent, and linked directly to customers’ bank accounts.
This means eligibility is based on actual account activity and financial behaviour rather than just mobile usage history.
Bigger economic impact for Nigerians
The implications go far beyond convenience.
Lower borrowing costs mean Nigerians spend less on emergency airtime and data credit, leaving more money in their pockets for food, transport, school fees, and business operations.
It also helps strengthen financial inclusion by encouraging account usage, savings habits, and formal credit history building.
Banks benefit too, with stronger oversight from the Central Bank of Nigeria, better risk management through account analysis, and easier loan recovery through automatic deductions.
However, access remains a challenge for some Nigerians.
Most banks require active accounts with regular inflows, often averaging around N10,000 monthly, thereby excluding rural dwellers and informal workers without stable banking relationships.
The end of telco monopoly?
This growing bank invasion of telecom territory signals the decline of telcos’ long-standing monopoly over small-ticket digital credit.
For telecom companies, losing control of airtime lending means losing a major revenue source and a powerful customer retention tool.
It may also force deeper partnerships between banks and telcos, or accelerate the push toward licensed digital lending and mobile money collaborations.
What started as stricter regulation around consumer protection has now triggered one of the biggest competitive shifts in Nigeria’s digital economy.
Source: Getty Images
As more banks enter the market, borrowing rates are expected to drop further, product options will improve, and customers will gain even more power.
For millions of Nigerians simply trying to stay connected without paying excessive fees, the message is clear: the era of expensive telco airtime loans is fading fast.
FCCPC data shows 10 loan apps and their rates
Legit.ng earlier reported that the Nigerian lending ecosystem is undergoing a dramatic reform, with the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) issuing a new raft of policies for operators.
The new FCCPC’s new policy has led to telecommunication companies in Nigeria discontinuing airtime and data lending, a service that has been given to newly licenced firms.
However, as digital lending continues to expand in Nigeria, several mobile apps now provide quick, collateral-free loans to individuals and small businesses.
Source: Legit.ng
