Reaction As MTN Announces Suspension of Airtime, Data Borrowing Services, Gives Reasons
- MTN Nigeria has temporarily suspended its Xtratime airtime and data lending service
- The company says customers can still buy airtime and data through other channels
- Nigerians have reacted online, lamenting the disruption as many rely on the service
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
MTN Nigeria has explained its decision to temporarily suspend airtime and data lending services, popularly known as Xtratime.
In a corporate filing to the Nigerian Exchange Limited on Thursday, April 16, the telecom giant said that its decision is due to new regulatory requirements governing digital lending in Nigeria.
Source: Getty Images
MTN suspends lending service
MTN noted that the suspension is part of efforts to comply with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
According to the company, the new rules establish a compliance and licensing framework for entities providing digital or non-traditional consumer credit services, bringing telecom operators offering airtime and data advances under regulatory oversight.
The statement signed by its Company Secretary, Uto Ukpanah, reads:
MTN Nigeria Communications PLC hereby notifies the Nigerian Exchange Limited and the investing public that the Company has temporarily suspended its airtime and data credit advance service (“Xtratime”).
"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.
The firm added that customers will continue to access alternative digital channels to purchase airtime and data while the service remains unavailable.
MTN also reassured investors that the temporary suspension is not expected to materially affect its financial performance.
It continued:
“In the interim, customers continue to have access to alternative digital channels for airtime and data purchases. Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact. We are closely monitoring customer behaviour and usage trends and will provide an update on any quantified impact in our Q1 2026 results."
Source: Getty Images
FCCPC regulations
The FCCPC regulations, which build on earlier 2022 guidelines, require all digital lenders operating in Nigeria to register with the commission. This also includes airtime or dental lenders, which brings MTN and other telecom operators offering the services under a new set of regulations.
Operators were given a deadline of April 2026 to comply or face possible regulatory actions.
Industry observers say the development emphasises increasing oversight of digital credit services as regulators tighten rules to protect consumers and ensure transparency in the sector.
Public reactions
Customers who try to borrow get this message:
"MTN Nigeria Communications Message. Dear Customer, Xtra Time is currently unavailable. Kindly recharge by dialling *904# or *671#. We apologise for the inconvenience."
The development has sparked widespread reactions online, with many Nigerians lamenting the impact on daily communication, especially among prepaid users who rely on the service during emergencies.
A user, identified as @asuperstarr_, wrote:
“Life so private no one knows I haven’t been able to come online since MTN stopped borrowing airtime or data service.”
Others described the move as inconvenient amid rising living costs, noting that airtime and data lending had become a critical fallback for millions of Nigerians.
NCC orders telcos to compensate Nigerians
In a related development, Legit.ng reported that the Nigerian Communications Commission (NCC) has issued a major directive that could change how Nigerians experience mobile services.
From April 2026, telecom operators must automatically compensate subscribers for poor network performance.
This directive affects all major Mobile Network Operators, including MTN Nigeria, Airtel Nigeria, Globacom, and 9mobile.
Source: Legit.ng
