FOLLOWING growing public concerns and confusion occasioned by stoppage of airtime borrowing and data advance services by major telecommunications service providers, the Federal Competition and Consumer Protection Commission (FCCPC) has clarified that it has not banned airtime borrowing or data advance services in Nigeria, describing any such reports as false and misleading.
The Commission, in a statement on Friday, April 17, on its official X handle, clarified that it has not issued any directive prohibiting consumers from accessing lawful telecom value-added services, insisting that airtime borrowing and data advance services remain available and any suggestion to the contrary is inaccurate.
It explained that the confusion arose following regulatory measures introduced in July last year, under the DEON Consumer Lending Regulations, reiterating: “The Commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services.”
It stated that the framework was established after a surge in consumer complaints relating to opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards and weak accountability in parts of the digital lending and advance-services market.
The Commission explained that rather than banning services, the regulations were designed to promote fairness and transparency by requiring operators to register properly, disclose fees and terms clearly, adopt responsible lending practices and provide accessible channels for consumer complaints, and intended to strengthen consumer protection, improve service quality and boost confidence in the market.
FCCPC disclosed that some telecom operators had engaged in exclusionary third-party arrangements in violation of the Federal Competition and Consumer Protection Act, 2018, limiting competition within the sector; hence the new regulations, aimed at opening up the market to both local and international participants in line with free market principles.
“The primary aim is to promote a fairer and more transparent system by mandating proper registration, responsible lending conduct, clear disclosure of fees and terms, accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners and effective regulatory oversight,” it added.
The Commission stated that operators were initially given a 90-day compliance period to align with the new framework, which was later extended to January 5, this year, regretting that despite this extension, some operators failed to regularise their services within the stipulated timeframe and continued operating models that had long generated consumer complaints.
It stressed that any temporary suspension or restriction of airtime borrowing or data advance services should be understood as a business or compliance decision by the operators involved, not a ban imposed by the regulator and attributing such disruptions to regulatory action is misleading, especially when operators had sufficient time to comply.
It warned against deliberate attempts by vested interests to spread disinformation and undermine efforts to create a fair and transparent market, urging Nigerians to disregard false narratives and rely on accurate information regarding the status of telecom services.
Recall that MTN Nigeria Communications Plc and Airtel Nigeria had temporarily suspended their airtime and data lending service, “Xtratime,” attributing the decision to new FCCPC regulations.
MTN, in a corporate filing to the Nigerian Exchange Limited (NGX) on Thursday, April 16, said the suspension was necessitated by the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which established a new compliance and licensing framework for providers of digital credit services.
In the disclosure signed by its Company Secretary, Uto Ukpanah, the telecom operator explained that Xtratime enabled eligible prepaid subscribers to borrow airtime or data and repay on their next recharge, adding: “MTN Nigeria Communications Plc hereby notifies the Nigerian Exchange Limited and the investing public that the Company has temporarily suspended its airtime and data credit advance service (‘Xtratime’).
“This relates to the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.
”The implementation introduced a new compliance and licensing framework for entities providing digital or non-traditional consumer credit services.”
It assured customers that other digital channels for purchasing airtime and data would remain available during the suspension, noting that the temporary halt was not expected to significantly impact its earnings, given the scale within the revenue mix.
MTN added that it would continue to monitor customer behaviour and provide updates on any measurable impact in its first quarter 2026 results.
Airtel Nigeria followed suit, in a statement on Friday, April 17, by its Director, Corporate Communications and CSR Airtel Nigeria, Femi Adeniran, saying the decision was part of ongoing adjustments to align its operations with evolving regulatory and operational requirements in Nigeria’s telecommunications sector.
It assured customers that they will continue to have uninterrupted access to standard airtime and data purchases through existing channels, saying suspension of the credit service was not expected to affect overall service quality or network performance across the country.
Its Director of Marketing, Ismail Adeshina, described the move as “necessary and responsible, as we align our operations with evolving requirements.”
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