The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that it has not banned airtime borrowing or data advance services in Nigeria, amid growing public concerns following recent industry developments.
The clarification follows MTN Nigeria’s decision to suspend its airtime and data credit service, known as “Xtratime,” citing compliance with the Digital, Electronic, Online or Non-Traditional (DEON) consumer lending regulations introduced in 2025. The regulations were officially gazetted and became effective on July 21, 2025.
Earlier in September 2025, the FCCPC explained that the framework—issued under the Federal Competition and Consumer Protection Act (2018)—was designed to improve registration, transparency, and ethical recovery practices in digital lending. By November 2025, the commission had set January 5, 2026, as the deadline for full compliance.
In a statement released on Friday, the commission dismissed reports suggesting that it had shut down airtime borrowing or similar services.
“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,” the statement reads.
The FCCPC explained that its regulatory intervention was triggered by consumer complaints relating to hidden charges, unclear deductions, aggressive recovery methods, and poor disclosure practices.
According to the agency, these concerns led to the introduction of the DEON consumer lending regulations in July 2025 to address harmful practices in the sector.
“The regulations were introduced to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market,” the FCCPC said.
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It further noted that the goal of the framework is to ensure fairness and transparency by enforcing proper registration, responsible lending behaviour, clear disclosure of terms and fees, accessible complaint channels, data protection measures, and stronger oversight of third-party partnerships.
The commission also alleged that some telecom operators had engaged in exclusionary practices contrary to the FCCPC Act 2018, adding that the new rules aim to promote fair competition in the sector.
Operators were initially given a 90-day compliance period from July 2025, later extended to January 5, 2026, to regularise their operations.
However, the FCCPC said some providers failed to meet the deadline and continued operating under models that had drawn consumer complaints.
“Any temporary suspension, restriction, or operational change introduced by service providers should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC,” the commission added.
It also accused some unnamed interests of spreading misinformation to misrepresent the situation and undermine regulatory efforts.
“It is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply,” the agency said.
“Attempts to misrepresent temporary service inconvenience as the result of lawful consumer regulation are mischievous. Nigerians deserve accurate information, not sensational claims.”
The FCCPC urged the public to disregard misleading reports, reaffirming its commitment to consumer protection, fair competition, and transparency in Nigeria’s digital financial services sector.