Nigerian mobile network operators (MNOs) have begun restoring voice and data lending services, commonly known as XtraTime, after a five-week suspension that caused significant disruption for millions of subscribers. Airtel and Globacom quietly reactivated these services earlier this week, with MTN and T2mobile (formerly 9mobile) indicating they will soon follow suit. The suspension stemmed from the Federal Competition and Consumer Protection Commission's (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON) framework, which introduced new requirements focused on transparency, accountability, fairness, and consumer protection in digital lending services.

The XtraTime service, estimated to be worth N400 billion yearly, has been a vital financial lifeline for Nigerians, enabling them to make calls or connect online by recharging and paying back later with a 15% interest. This service became increasingly essential amidst rising smartphone penetration, financial inclusion efforts, and the expanding digital landscape in Nigeria. The temporary halt in XtraTime had a notable impact on subscribers, who were forced to rely solely on banks for airtime and data advances, often facing stricter terms. Prior to the suspension, MNOs like MTN and Airtel had generated substantial revenue from these services, reportedly nearly N100 billion in the first quarter of 2026 alone.

During the five-week suspension period, the industry witnessed considerable back-and-forth discussions and legal challenges surrounding the implementation of the DEON regulations. Telcos initially cited the need for time to comply with the FCCPC's new rules as the reason for suspending XtraTime. However, unverified industry claims suggested that the suspension was primarily a strategic move by telcos to recover outstanding debts from subscribers, with some reports indicating that an astounding N2 trillion was recovered within the first three days of the service pause. This period saw telcos implement strict debt-recovery measures, requiring subscribers to clear outstanding balances before making calls or browsing the internet.

Legal battles ensued, further complicating the situation. The Wireless Application Service Providers Association of Nigeria (WASPAN) challenged both the legality of the DEON rule and the FCCPC's regulatory authority within Nigeria's digital economy and telecoms industry at the Federal High Court in Lagos. WASPAN argued that certain provisions of the regulations would negatively affect its members, highlighting a potential regulatory clash. Interestingly, even before the telcos announced their suspension of XtraTime, the Lagos High Court had temporarily blocked the FCCPC from enforcing specific parts of its 2025 digital lending regulations. In response, the FCCPC clarified in an April statement that it had not prohibited airtime borrowing or data advance services and had issued no directive preventing consumers from accessing lawful telecom value-added services, adding that the timeline for telcos to adjust to the guidelines had already elapsed in January.

Further judicial intervention came from the Federal High Court, Abuja Judicial Division, which, in a ruling concerning Nairtime Nigeria Ltd (a subsidiary of Optasia), directed telcos to restore XtraTime services. With Airtel and Globacom having already reactivated their services, the focus now shifts to MTN and T2mobile. MTN has outlined conditions for the restoration of its airtime and digital lending services, stating it could resume either upon a court ruling that removes the FCCPC from regulating telcos' digital lending, or once it achieves full compliance with the FCCPC's regulatory provisions for data lending (DEON). Furthermore, MTN Nigeria CEO Karl Toriola indicated the company is exploring new alternatives, including onboarding more vendors, following the FCCPC's licensing of five new providers, to diversify and reduce reliance on a single provider.

The legal dispute between the FCCPC and WASPAN regarding the legality of the DEON rule in the telecoms industry is ongoing, with judgment reserved until July 20, 2026. While some telcos have resumed services, there are no official statements or industry pronouncements definitively verifying their full compliance with the DEON rule. However, telcos like Airtel have reiterated their commitment to "the highest standards of compliance, transparency, and consumer protection," underscoring their intent to operate responsibly within Nigeria's evolving digital ecosystem.