MTN Nigeria has temporarily halted Xtratime, its airtime and data borrowing service, to align with the country’s evolving regulatory framework for digital credit.
The decision was disclosed in a filing to the Nigerian Exchange Limited.
Xtratime falls within the scope of new regulations that require additional licensing and compliance measures for digital credit providers, says Uto Ukpanah, the company secretary of MTN Nigeria.
The move complies with the 2025 Digital Lending Regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
Under the framework, providers must meet stricter licensing, disclosure, and consumer protection standards, particularly regarding data privacy and debt recovery practices.
MTN Nigeria says the pause is part of internal adjustments to meet these obligations.
Core services, including voice and data purchases via Unstructured Supplementary Service Data, banking channels, mobile apps, and agents, remain unaffected.
The company also downplayed any immediate financial impact, saying Xtratime contributes minimally to overall revenue.
However, the telco acknowledged that customer behaviour will be closely monitored, with clearer insights expected in its Q1 2026 financial results.
The move comes amid regulatory uncertainty for digital lenders in the West African nation.
While the FCCPC has approved over 170 loan apps under the new regime, enforcement has faced legal pushback.
A recent ruling by the Federal High Court in Lagos temporarily restrained parts of the regulation following a challenge by the Wireless Application Service Providers Association of Nigeria (WASPAN).
WASPAN argued that certain provisions could disrupt business models across the sector.
MTN Nigeria did not indicate when Xtratime will resume, but the move reflects a broader shift as telecom and fintech firms adjust to tighter digital lending rules.
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