MTN to Join Airtel, Globacom to Restore Airtime Lending After Regulatory Pause

MTN Nigeria is preparing to reinstate its Xtratime airtime lending service following a temporary regulatory pause that affected digital lending rules in the country’s telecom sector.

The move comes after the Federal Competition and Consumer Protection Commission (FCCPC) suspended enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025, a development that reopened the door for operators to restore affected services.

“The FCCPC has suspended the enforcement of DEON. To that extent, we will reinstate the service,” a company insider told TechCabal.

MTN’s decision aligns it with Airtel and Globacom, which have already resumed their airtime lending services following the regulatory shift.

Xtratime allows subscribers to borrow airtime or data and repay through subsequent recharges, generating fees for MTN while supporting short-term customer consumption needs across voice and data services.

However, the company had earlier taken a more cautious stance. During its May 4 earnings call, executives noted that a court ruling restricting enforcement did not automatically require a return to airtime lending, since it did not invalidate the underlying regulations or explicitly direct operators to resume services.

“In terms of what needs to happen for us to resume airtime advance service, there are essentially two conditions,” said Tobechukwu Okigbo, MTN Nigeria’s chief corporate services and sustainability officer. “First, we would require either a court ruling that sets aside the regulations… or a clear directive instructing us to reinstate the service.”

That position shifted after the FCCPC formally suspended enforcement of the DEON regulations on May 22, following an interim order from the Federal High Court in Lagos linked to a lawsuit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN).

MTN, however, maintains that the temporary absence of Xtratime had a limited long-term impact on usage patterns, arguing that customers quickly adapted to alternative payment behaviours.

“There was a short-term impact on consumption patterns, which lasted only a few days,” MTN Nigeria CEO Karl Toriola said. “However, as time progressed, customers adapted.”

According to the company, fees from Xtratime contribute about 3% of revenue, while related airtime and data usage account for a significant portion of overall consumption patterns across its network.

MTN Nigeria generated ₦5.2 trillion ($3.77 billion) in revenue in 2025 and is projecting at least ₦6.24 trillion ($4.52 billion) in 2026, underscoring the scale at which even niche services like airtime lending operate within its broader business model.

Despite its financial relevance, MTN argues that Xtratime mainly influences how customers pay for services rather than overall telecom consumption, suggesting the business remains stable even during periods of suspension.

With Airtel and Globacom already back in the space, MTN’s return signals a coordinated rebound in airtime lending across Nigeria’s telecom sector as regulatory uncertainty temporarily eases.

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