If you have ever run out of airtime mid-call and borrowed from MTN to stay connected, that option is temporarily off the table.

MTN Nigeria has suspended its Xtratime service, the feature that allows subscribers to borrow airtime or data and repay later, while it works to comply with a new federal digital lending regulation that came into effect last year.

What Is Xtratime and Why Has It Been Suspended?

Xtratime is MTN Nigeria's credit service that lets subscribers access airtime or data instantly and pay back from their next recharge. For millions of Nigerians who rely on pay-as-you-go mobile services, it has functioned as a basic financial lifeline, particularly in moments when a recharge card is not immediately available.

The suspension was disclosed in a filing on the Nigerian Exchange on Thursday.

MTN Nigeria stated that the pause is necessary to implement processes required under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, known as DEON, a new compliance and licensing framework that covers digital lending services including airtime credit, loan apps, and buy-now-pay-later products.

MTN's statement confirmed that normal voice and data purchases remain available across all platforms including USSD, bank apps, mobile apps, and POS agents. Only the borrowing feature is affected.

What Is the DEON Regulation?

DEON was introduced by the Federal Competition and Consumer Protection Commission and took effect on July 21, 2025. The regulation was designed to clean up Nigeria's digital lending sector, which has faced widespread criticism over predatory practices, including harassment of borrowers, unauthorised access to contact lists, and opaque loan terms.

Under DEON, companies offering any form of digital credit are required to obtain proper licences, meet stricter compliance standards, maintain transparent loan terms, and adopt ethical debt recovery practices.

Lenders are explicitly prohibited from contacting a borrower's personal contacts as a recovery tactic, and strict data privacy requirements apply across the board.

The regulation effectively places telecom operators offering airtime credit in the same compliance category as loan apps and digital lenders, a classification that requires MTN to restructure how Xtratime operates before it can legally continue.

Will This Affect MTN's Revenue?

MTN Nigeria has moved to reassure investors that the suspension will not significantly affect its financial performance. In its exchange filing, the company stated that Xtratime does not represent a major share of its overall revenue mix and that it does not expect the pause to have a material impact on its numbers.

The actual financial effect will become clearer when MTN releases its first quarter 2026 results. The company said its team is actively monitoring customer behaviour and any changes in usage patterns during the suspension period.

MTN did not provide a timeline for when the service will resume.

There Is a Legal Complication

While MTN is moving to comply, the regulation itself is facing a legal challenge.

On Wednesday, a federal high court in Lagos issued a temporary order blocking the FCCPC from enforcing parts of DEON, following a lawsuit filed by the Wireless Application Service Providers Association of Nigeria.

The industry group argued that certain provisions of the regulation would negatively affect its members and needed to be examined by the court.

The legal challenge creates an unusual situation, MTN is pausing its service to comply with a regulation that is simultaneously being contested in court. It is not yet clear how the court proceedings will affect the timeline for Xtratime's return or the broader implementation of DEON across the digital lending sector.

For now, MTN subscribers who rely on airtime or data borrowing will need to find alternative arrangements until the company completes its compliance process and the regulatory picture becomes clearer.