MTN halts XtraTime service amid Nigeria’s new digital lending rules

MTN Nigeria has suspended its airtime and data credit advance service, XtraTime, citing compliance requirements under new consumer lending regulations. The company disclosed this in a notice to the Nigerian Exchange Limited on April 16, 2026.

XtraTime allowed MTN subscribers to borrow airtime or data against future recharges. It was a widely used service, particularly among prepaid customers with low balances.

MTN said the suspension relates to processes it must implement under the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025. The regulations introduce a new compliance and licensing framework for entities providing digital or non-traditional consumer credit services. The company said customers can still purchase airtime and data through alternative digital channels.

MTN added that it does not expect the suspension to have a material impact on revenue, given XtraTime’s share of the revenue mix. The company said it is monitoring customer behaviour and usage trends and will provide a quantified impact update in its Q1 2026 results.

The 2025 regulations bring airtime credit services under formal consumer lending oversight for the first time. Regulators have flagged concerns about transparency, interest disclosure, and consumer protection in digital micro-credit products, including telco-led services that operate outside traditional banking supervision. Airtime credit, by its design, functions as a short-term loan. Under the new framework, offering such services requires a license.

The suspension raises questions about the future of telco-led consumer lending in Nigeria more broadly. MTN Nigeria also operates MoMo, its mobile money platform, which offers financial services including lending. How MoMo is classified under the new regulations and whether it faces similar compliance pressure will be a key question as the regulatory framework takes effect.

MTN said it will provide further updates when it reports its Q1 2026 results.

Last updated: April 16, 2026