MTN, Airtel suspend airtime loans as telcos rush to meet FCCPC lending rules

MTN Nigeria temporarily suspended its Xtratime airtime and data loan service on Thursday, and Airtel Nigeria followed on Friday, both citing the need to comply with the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations introduced in July 2025. The rules require telcos offering repayable credit to obtain licences, disclose interest and fees, and meet data-protection standards. MTN said the suspension relates to implementing processes under the DEONCL framework, while Airtel emphasized its commitment to responsible innovation. The FCCPC clarified it did not ban the services; the suspensions stem from operators missing the Jan 5 2026 compliance deadline after an initial 90-day window was extended.

The change affects millions of prepaid users who rely on airtime or data advances when cash runs low, removing a convenient credit option and potentially forcing them to buy outright or go without connectivity. It also hits a high-margin revenue stream: in 2025 MTN's fintech earnings reached ₦191.3 billion, of which airtime lending contributed a sizable share, and Airtel's "other" revenue segment—which includes airtime credit—was $113 million, up 44% year-on-year.

Customers can still purchase airtime and bundles through normal channels. The telcos say the halt is temporary and service will resume once they secure the required licences. Users dependent on loans should plan ahead, budget for airtime, and watch for announcements of service restoration.

SOURCE: https://techcabal.com/2026/04/17/why-mtn-and-airtel-temporarily-suspended-airtime-lending/