MTN’s Xtratime faces shutdown over new digital lending framework

By Juliet Umeh

Telecommunications service provider, MTN Nigeria, has announced the temporary suspension of its airtime and data credit service, Xtratime, in compliance with new regulatory requirements governing digital lending in the country.

The company disclosed this in a corporate notice filed with the Nigerian Exchange Limited, NGX, on Thursday.

Xtratime allows subscribers to borrow airtime or data and repay on their next recharge, a service widely used by millions of Nigerians, particularly during periods of financial constraints.

In the notice signed by the Company Secretary, Uto Ukpanah, MTN said the suspension is necessary to align with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

According to the company, the new framework introduces stricter compliance and licensing requirements for organisations offering digital or non-traditional credit services.

“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,” the statement read.

“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.”

Despite the suspension, MTN assured subscribers that alternative channels for purchasing airtime and data remain available, including banking applications and USSD platforms.

The telecom operator also sought to allay investor concerns, stating that the temporary suspension is not expected to significantly impact its earnings.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said.

“We are closely monitoring customer behaviour and usage trends and will provide an update on any quantified impact in our Q1 2026 results.”

The development comes amid intensified regulatory oversight of Nigeria’s digital lending space by the Federal Competition and Consumer Protection Commission, aimed at strengthening consumer protection and ensuring financial system stability.

The regulations, which took effect on July 21, 2025, were issued under the Federal Competition and Consumer Protection Act, 2018, and provide a comprehensive framework covering registration, transparency, and ethical loan recovery practices.

Subsequently, the Commission set January 5, 2026, as the deadline for full compliance by all digital lenders operating in the country.

Industry observers said MTN’s move reflects the growing impact of regulatory reforms on telecom-led financial services, particularly as operators expand beyond traditional voice and data offerings into fintech-driven solutions.

They noted that while the suspension may temporarily affect user convenience, it signals a broader shift towards a more structured and compliant digital lending ecosystem in Nigeria.

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