MTN Nigeria is set to bring back its Xtratime airtime lending service after regulators paused enforcement of new regulations that had forced telecom operators to suspend the product earlier in the year.
Airtel and Globacom have already restored similar services. MTN now follows after the Federal Competition and Consumer Protection Commission (FCCPC) suspended enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.
The regulator introduced the policy in 2025 and classified airtime and data lending as consumer credit. This required telecom operators and their partners to obtain licences and meet compliance conditions.
In April 2026, MTN, Airtel, Globacom and 9mobile suspended airtime lending services to comply with the directive.
A court order issued on April 15, 2026, followed a case filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which represents value-added service providers. The order triggered further regulatory challenges and expanded the disruption.
By one estimate, the suspension affected about 40 million subscribers across Nigeria. Many of them depend on airtime borrowing for quick communication, small business operations and emergency use. The service sits within a market valued at about ₦400 billion.
MTN had initially taken a careful position. The company told investors it would not restart Xtratime unless the regulations were struck down or it received a clear directive to resume.
That position has now changed, after the FCCPC paused enforcement on May 22, 2026, MTN confirmed it will reinstate the service.
A company insider said: “The Federal Competition and Consumer Protection Commission (FCCPC) has suspended the enforcement of DEON. To that extent, we will reinstate the service,”
Competition also had an impact. Airtel and Globacom moved earlier to restore their own airtime lending platforms once the enforcement pause began, increasing pressure on MTN to follow.
MTN Xtratime lending allows customers to borrow airtime or data and repay on later top-ups. The service generates fees for the company and supports overall network usage.
During an earnings call, MTN Nigeria chief executive Karl Toriola said the impact on usage was short-lived. He said:
“There was a short-term impact on consumption patterns, which lasted only a few days,” MTN Nigeria chief executive officer Karl Toriola said during the earnings call. “However, as time progressed, customers adapted. They either shifted to self-funded usage or found alternative ways to manage short-term needs.”
The company estimates that Xtratime fees contribute about 3% of total revenue. Airtime and data linked to the service account for roughly 20% of overall airtime distribution.
Tobechukwu Okigbo, MTN Nigeria’s chief corporate services and sustainability officer, also noted earlier concerns around resumption conditions.
He said: “First, we would require either a court ruling that sets aside the regulations empowering the FCCPC to license, which has not happened, or a clear directive instructing us to reinstate the service.”
MTN Nigeria recorded ₦5.2 trillion in revenue in 2025, equal to about $3.77 billion. It expects this to rise to ₦6.24 trillion, or about $4.52 billion, in 2026.
Despite the disruption, MTN maintains that airtime consumption patterns are still stable. The company argues that customers mainly changed how they pay, not how much they use services.
“I note that MTN does not expect Xtratime’s absence to derail performance targets,” an executive said in internal discussions around the update.
In its first quarter 2026 report, MTN said it is still onboarding approved partners and expects full restoration once the process is completed.
The company now treats the service as operationally important but not critical to overall performance.
