The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that it has not banned airtime borrowing or data advance services in Nigeria, countering widespread claims.
The statement comes a few days after MTN Nigeria said it was suspending its airtime and data credit advance service, popularly known as “Xtratime,” in compliance with the Digital, Electronic, Online or Non-Traditional (DEON) consumer lending regulations, 2025.
The regulations were officially gazetted and took effect on July 21, 2025.
In September 2025, the FCCPC said the rules, issued under the Federal Competition and Consumer Protection Act (2018), would serve as a comprehensive framework for registration, transparency, and ethical loan recovery.
In November 2025, the FCCPC set January 5, 2026, as the deadline for full compliance with the regulations.
Providing clarity in a statement on Friday, the commission said claims circulating in some media reports and social media posts suggesting it shut down such services are “incorrect.”
“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 said its intervention in the sector followed complaints from consumers over opaque charges, unexplained deductions, aggressive recovery practices, and poor disclosure standards.
According to the commission, the issues prompted the introduction of the Digital Economy and Online Lending (DEON) consumer lending regulations in July 2025 to address abuses in the market.
“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.
“The primary aim is to promote a fairer and more transparent system by mandating proper registration, responsible lending conduct, clear disclosure of fees and terms, accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight.”
‘REGULATION AIMED AT OPENING MARKET, FAIR COMPETITION’
The agency said some telecom operators engaged in exclusionary arrangements in violation of the Federal Competition and Consumer Protection Act 2018, noting that the regulations were designed to open up the market and encourage fair competition.
The FCCPC said operators were initially given a 90-day compliance window from July 2025 to regularise their operations, which was later extended to January 5, 2026.
However, the commission said some service providers failed to comply within the stipulated timelines and continued operating under existing models that had attracted 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.
The commission accused some vested interests of spreading misinformation to 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 advised the public to disregard misleading reports, reiterating its commitment to protecting consumers, promoting fair competition, and ensuring transparency in digital financial services.
