MTN Nigeria Communications PLC has announced the temporary suspension of its popular airtime and data credit advance service, widely known as “Xtratime,” to align with newly introduced federal regulations governing digital lending.
The telecommunications giant disclosed the decision in a corporate notice filed with the Nigerian Exchange (NGX) on Thursday, following the expiration of the deadline for full compliance with the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations, 2025.
The Xtratime service, a staple for millions of subscribers, allows users to borrow airtime or data during financial “dry spells” and repay the debt upon their next recharge. However, the service now falls under a more stringent oversight framework managed by the Federal Competition and Consumer Protection Commission (FCCPC).
According to a statement signed by the Company Secretary, Uto Ukpanah, the suspension is a proactive measure to ensure the firm adheres to the licensing and ethical requirements mandated by the new law.
“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 notice read.
The DEON regulations, which were officially gazetted on 21st July 2025, were designed to bring transparency to the digital credit ecosystem and curb unethical loan recovery practices. In November 2025, the FCCPC set a firm deadline of 5th January 2026 for all service providers to achieve full compliance.
While the suspension removes a convenient credit option for many, MTN has assured its subscribers that standard purchase channels remain unaffected. Customers can continue to procure airtime and data through conventional digital platforms, including banking applications and USSD channels.
Addressing potential anxieties within the investment community, the telecommunications firm stated that the suspension is unlikely to cause a significant dent in its overall financial performance.
“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company asserted. MTN further noted that it is closely monitoring customer behaviour and usage trends, promising a detailed update on any quantified impact during the release of its Q1 2026 results.
As the Federal Government continues to ramp up oversight of the electronic ecosystem, the move by MTN signals a significant shift in how “non-traditional” financial services are delivered by non-banking entities in Nigeria, prioritising consumer protection and financial stability over immediate service continuity.
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