MTN Nigeria Suspends Xtratime Airtime and Data Borrowing Service to Comply with Digital Lending Regulations

Gate News message, April 16 — MTN Nigeria has temporarily suspended its Xtratime service, which allows subscribers to borrow airtime or data and repay later, to comply with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 (DEON). The suspension follows new compliance and licensing requirements introduced by Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) for entities providing digital lending services.

Normal voice and data purchases remain available through USSD, banking platforms, mobile apps, and POS agents. MTN stated that the Xtratime service does not represent a significant revenue driver and does not expect the temporary suspension to have a material financial impact. The company will monitor customer reactions and usage changes, with the actual effect to be detailed in Q1 2026 financial results. No timeline has been provided for when the service will resume.

The DEON framework, effective July 21, 2025, establishes comprehensive rules to combat predatory lending and protect consumer data. Key requirements include mandatory registration for digital lenders, transparent loan terms, ethical debt collection practices, and a prohibition on automatic loans. However, implementation has faced legal challenges: on Wednesday, a federal high court in Lagos temporarily blocked the FCCPC from enforcing parts of the rule after the Wireless Application Service Providers Association of Nigeria contested the regulations.