MTN Nigeria has announced the temporary suspension of its Xtratime service, which previously allowed subscribers to borrow airtime or data for later repayment. This adjustment was disclosed on Thursday via the Nigerian Exchange (NGX) and is a direct consequence of the company's need to comply with the new Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON).

The DEON regulations introduce a comprehensive new compliance and licensing framework specifically for entities providing digital or non-traditional consumer credit services, including airtime credit, loan applications, and Buy Now, Pay Later (BNPL) schemes. MTN's statement clarified that its decision relates directly to the implementation of processes required under this new regulatory framework.

Despite the suspension of Xtratime, MTN has assured customers that normal voice and data purchases remain available through various platforms, including USSD, bank channels, mobile applications, and POS agents. Furthermore, MTN does not anticipate a material impact on its revenue performance from this temporary suspension, citing that the XtraTime service is not a major revenue driver within its overall mix.

The telecommunications giant is committed to monitoring how customers react to this development, observing any potential usage drops or changes. The actual financial effect of the Xtratime service suspension will be thoroughly assessed and revealed in their Q1 2026 financial results. MTN has not yet disclosed a specific timeline for lifting the suspension.

The DEON Regulations, effective July 21, 2025, were established by the Federal Competition and Consumer Protection Commission (FCCPC) as a comprehensive framework designed to combat predatory lending practices and enhance consumer data protection. Key requirements mandated by these regulations include compulsory registration for all digital lenders, clear and transparent loan terms, ethical debt collection methods that prohibit harassment of contacts, and the prohibition of automatic loans. Companies offering digital lending services are now required to obtain proper licenses and adhere to stricter compliance standards.

While MTN Nigeria is actively adjusting its services to conform to these new regulations, the implementation of DEON has encountered a significant setback. A federal high court in Lagos recently issued a temporary injunction, blocking the FCCPC from enforcing specific provisions of the rule. This legal challenge was brought forth by the Wireless Application Service Providers Association of Nigeria (WASPA Nigeria), an industry group that argued certain parts of the DEON's provisions would negatively impact its members.