No Ban on Airtime Borrowing or Data Advance Services in Nigeria — FCCPC

The Federal Competition and Consumer Protection Commission (FCCPC) has moved to clear the air following widespread confusion over the status of airtime borrowing and data advance services in Nigeria. According to the regulator, there is no ban on these services, contrary to claims circulating across social media and some media platforms.

The clarification comes shortly after MTN Nigeria announced the temporary suspension of its popular “Xtratime” service. The telecom operator had explained that the move was necessary to comply with the Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations introduced in 2025.

In its statement, the FCCPC emphasized that it has not issued any directive prohibiting airtime or data credit services. Instead, the commission explained that the regulations were designed to bring structure, transparency, and accountability to the rapidly growing digital lending space, including telecom-based credit offerings.

The DEON regulations, which took effect in July 2025 under the Federal Competition and Consumer Protection Act of 2018, were introduced following numerous complaints from consumers. These complaints included concerns about hidden charges, unclear loan terms, aggressive recovery tactics, and weak data protection practices.

According to the commission, the goal is not to shut down services but to ensure they operate fairly and responsibly. The framework requires service providers to register properly, clearly disclose fees and terms, protect consumer data, and establish accessible complaint channels. It also seeks to improve oversight and accountability, especially where third-party partners are involved.

The FCCPC noted that operators were given a 90-day window to comply with the new rules, which was later extended to January 5, 2026. Despite this grace period, some providers reportedly failed to meet the requirements, leading to operational adjustments such as temporary suspensions.

Importantly, the commission stressed that any disruption to services like airtime borrowing is a decision made by the companies themselves as they work to meet regulatory standards—not a direct ban from the government.

The agency also addressed what it described as misleading narratives, warning against attempts to portray regulatory enforcement as harmful or restrictive. It maintained that the reforms are necessary to protect consumers and build trust in Nigeria’s digital financial ecosystem.

As the sector continues to evolve, the FCCPC says its focus remains on creating a fair, transparent, and competitive environment where both consumers and service providers can thrive without exploitation or confusion.