Nigeria’s fast-growing digital credit sector is undergoing a major regulatory shake-up following new rules introduced by the Federal Competition and Consumer Protection Commission, a move that has already forced telecom giant MTN Nigeria to suspend its Xtratime airtime and data advance service.
The updated framework, known as the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, expands oversight beyond fintech platforms to include telecom operators and other providers of short-term credit services. Companies offering services such as airtime and data advances are now required to register and obtain formal approval before continuing operations.
The new rules build on earlier guidelines introduced in 2022 but introduce stricter compliance measures, including licensing requirements and transitional deadlines that extend up to April 2026 for full registration.
Regulators say the reforms are aimed at addressing rising concerns around consumer debt, data privacy, and lending practices in Nigeria’s rapidly expanding digital credit ecosystem. The sector has grown significantly in recent years, with embedded credit services becoming a major feature of mobile and online platforms.
As part of the compliance process, MTN Nigeria confirmed it has temporarily suspended Xtratime while it aligns with the new regulatory expectations. The company urged customers to use alternative digital channels to purchase airtime and data during the suspension period.
Despite the disruption, MTN stressed that the suspension is not expected to materially affect its financial performance, citing the service’s limited contribution relative to its overall revenue mix.
The company also said it is closely monitoring customer behaviour and usage trends as the regulatory transition unfolds, with updates expected once full compliance processes are completed.
MTN added that it will provide further guidance in its Q1 2026 results, where any measurable impact of the suspension will be assessed and disclosed.
Analysts note that the tighter regulatory environment signals a broader shift toward stricter governance of digital lending in Nigeria, with both telecoms and fintech operators now facing higher compliance expectations.
