MTN Nigeria has stated that its suspended XtraTime service will only be restored upon full compliance with regulatory requirements set by the Federal Competition and Consumer Protection Commission (FCCPC) or a definitive court ruling that removes the agency’s oversight of telecom-based digital lending.
Speaking during the company’s Q1 2026 earnings call, MTN’s Corporate Services and Sustainability Officer, Tobechukwu Okigbo, clarified that regulatory alignment remains the primary condition for reinstating the service. He added that an alternative pathway would be a clear judicial pronouncement limiting FCCPC’s authority over telcos’ lending operations.
The development follows a legal dispute initiated by Nairtime Nigeria Ltd, a subsidiary of Optasia, which challenged the suspension of XtraTime services. In April, the Federal High Court in Abuja issued an interim injunction directing telecom operators to restore the offering.
However, MTN argues that compliance with the court order is not straightforward. According to Okigbo, the ruling was issued roughly ten days after the company had already suspended the service in response to the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON) 2025.
He noted that the court was not informed at the time that the service had already been withdrawn, creating what the company describes as a practical limitation to immediate reinstatement. As a result, MTN maintains that the order does not adequately address the current regulatory context.
Regulatory Pressure Reshapes Telco Lending
The FCCPC’s new framework introduces stricter compliance requirements for digital lending platforms, directly affecting telecom operators that have historically offered credit services such as XtraTime. The regulation is part of a broader push to improve consumer protection, transparency, and accountability in Nigeria’s fast-growing digital lending ecosystem.
In response, MTN has suspended its lending services while evaluating compliance pathways and restructuring its partnerships.
Diversification Strategy Emerges
MTN is also using the disruption as an opportunity to reassess its vendor ecosystem. CEO Karl Toriola confirmed that the company is exploring multiple licensed digital lending providers to reduce reliance on a single partner and improve operational resilience.
The FCCPC has already approved several new lending firms, opening the door for telecom operators to diversify their service offerings under a compliant structure.
Limited Financial Impact
Despite the scale of the XtraTime market, estimated at approximately ₦400 billion annually, MTN has indicated that the suspension is unlikely to materially affect its financial performance in the short term. Customers are still repaying outstanding balances, with any measurable impact expected to reflect in the company’s Q2 2026 results.
The situation underscores a broader tension between innovation and regulation in Nigeria’s telecom sector. As digital lending becomes more embedded in everyday financial access, the balance between consumer protection and service continuity will remain a critical issue for operators and regulators alike.
