By Ayomide Otitoju
MTN Nigeria Communications Plc has notified the Nigerian Exchange Limited of the temporary suspension of its Xtratime service, citing ongoing compliance requirements under new consumer lending regulations.
In a corporate disclosure, the telecom operator said the suspension is linked to the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON), overseen by the Federal Competition and Consumer Protection Commission. The framework classifies airtime advance services as digital credit products, requiring licensing, enhanced consumer protection disclosures, and transparent pricing.
MTN stated that the pause is not expected to have a material impact on earnings and pledged to provide a detailed financial update in its first-quarter 2026 results. The company added that customers will continue to access airtime and data through alternative channels, including USSD, banking applications, and point-of-sale agents.
Despite the temporary halt, analysts note that MTN’s fintech segment may face a short-term revenue gap in the second quarter of 2026, given Xtratime’s significant contribution to the segment. However, the company’s broader financial position remains strong, supported by ₦5.2 trillion in revenue and a return to profitability in 2025.
Industry observers expect MTN to secure regulatory approval within a reasonable timeframe, potentially before the end of the first half of 2026, based on its track record of engagement with regulators.
The eventual reintroduction of Xtratime is likely to come with revised terms, including stricter consumer protections, user-initiated credit access, and limits on debt recovery practices, which may slightly reduce profit margins.
The development comes as all telecom operators in Nigeria, including Airtel, Globacom, and 9mobile, are required to comply with the same regulatory framework, limiting the risk of competitive disadvantage for MTN.
Meanwhile, the company continues to expand its fintech ecosystem through its MoMo platform, agent network growth, and merchant services, which are expected to provide more sustainable revenue streams.
In a related development, a Federal High Court in Lagos has issued an interim order restraining the FCCPC from enforcing certain provisions of the DEON regulations following a legal challenge by the Wireless Application Service Providers Association of Nigeria.
Market watchers are expected to closely monitor MTN’s second-quarter 2026 results, which will provide the first clear indication of the financial impact of the suspension and progress toward regulatory compliance.
