MTN Pulls Plug on Xtratime as New Rules Shake Up Digital Lending

MTN Nigeria Communications Plc has announced the temporary suspension of its Xtratime service, following fresh regulatory requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

The Company disclosed this in a filing to the Nigerian Exchange Limited on Thursday, explaining that the move is tied to the rollout of the new Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

According to MTN’s Company Secretary, Uto Ukpanah, the updated rules introduce stricter compliance and licensing requirements for all platforms offering digital credit services – including telecom operators.

Before the suspension, Xtratime allowed eligible prepaid customers to borrow airtime or data and repay on their next recharge – a feature widely used by subscribers across the country.

MTN clarified that the pause is temporary and necessary to align with the new regulatory framework, which now requires all digital lenders to formally register and meet compliance standards set by the FCCPC.

Despite the suspension, the company assured customers that regular channels for buying airtime and data remain fully operational.

It also downplayed any financial impact, noting that Xtratime contributes only a small portion to its overall revenue and is unlikely to significantly affect earnings.

The FCCPC’s updated regulations build on earlier guidelines introduced in 2022 to tighten control over digital lending in Nigeria. Under the new system, operators must complete registration or risk heavy penalties, including fines of up to ₦100 million.

The Commission, led by its CEO, Tunji Bello, had extended the compliance deadline multiple times – most recently to April 2026 – to give service providers enough time to meet the requirements.
For now, MTN says it will continue to monitor customer response and provide updates as the situation evolves.