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.

This is the steepest decline among Internet Service Providers (ISPs) in the country, pointing to the widening gap between the promises of broadband expansion and the challenging market realities these providers face.

Between Q3 2024 and Q1 2025, FibreOne’s subscriber base fell from 33,010 to just over 19,000, according to data released by the Nigerian Communications Commission (NCC). 

This happened as ISPs collectively shed over 18,000 users and 18 companies exited the market. While Starlink declined by 9% and Spectranet by 2.08%, FibreOne’s near-collapse stands out.

Several forces converged to drive this drop, chief among them being Nigeria’s worsening economic conditions. A 50% increase in telecom tariffs approved in February 2025, coupled with rising diesel prices, FX imbalance, and expensive infrastructure, has pushed fixed broadband beyond the reach of many households and businesses. For FibreOne and others, this has turned retention into an uphill battle.

Mobile networks, meanwhile, have stayed untouched. MTN, Airtel, Globacom, and 9mobile collectively hold over 141.9 million internet users as of April 2025. Their edge? Affordability, accessibility, and increasing forays into Fibre to the Home (FTTH), where they’re now challenging traditional ISPs with flexible pricing and wider reach.

But FibreOne’s downfall exposes a lack of strategy, poor adaptability, and the absence of policy support. Telecom analyst Jide Awe told TechCabal: “ISPs like FibreOne are feeling the full weight of Nigeria’s economic realities.”

Awe believes there’s still a path forward if ISPs adapt. “They should consider bundling services, target underserved sectors like education and healthcare, and invest in solar solutions to cut operating costs,” he said.

FibreOne is not alone in this struggle, but it may be the most visible casualty of an ecosystem in retreat. While mobile data has become the default for most Nigerians, the downside is becoming more obvious, mobile internet cannot handle the demands of e-learning, telemedicine, enterprise networking, or institutional-scale connectivity.

Diseye Isoun, CEO of Content Oasis, offered a more structural critique: “At the end of the day, ISPs are treated as peripheral, but they are critical to the broadband ecosystem—especially for schools, hospitals, and local businesses. What’s missing is policy—not just investment—that ensures ISPs can serve strategic access points.”

Isoun advocates a model inspired by Brazil’s Telebras—government-backed partnerships with vetted ISPs to guarantee broadband in priority sectors. It’s a contrast to Nigeria’s market-driven approach, which continues to choke out smaller ISPs and leaves critical institutions under-connected.

The data reflects this squeeze. In Q4 2023, Nigeria had 252 licensed ISPs; only 106 were active. By Q1 2025, licensed ISPs had dropped to 234, with just 127 operational. The gap between those with licences and those who can afford to stay in business is increasing.

The situation with Starlink further complicates matters. Initially celebrated as a game-changer for remote connectivity, Starlink has faced underwhelming adoption. Its monthly fees rose from ₦38,000 to ₦57,000 in early 2025, pricing out average users. 

A Starlink retailer confirmed the retreat: “Many Nigerians are cutting down on their subscriptions. I know a couple of people who have scaled down on the subs.”

As the broadband market thins out, what remains is a fragmented sector, over-reliant on mobile operators, with serious implications for national digital capacity.

Nnamdi Richards, a telecom expert, suggested structural reform: “We may need a solution similar to what was done with the banking sector: mergers, acquisitions, IPOs, SEC listings. That could help stabilise some of them financially.”

He also pointed to seasonal risks ISPs now face: “We’re in the rainy season now, and lightning strikes and flooded communities. This is a nightmare for small ISPs without the capacity to cope.”

Without urgent reforms, strategic partnerships, and smarter pricing, Nigeria risks sidelining an important pillar of its digital sustainability.