The Federal Competition and Consumer Protection Commission (FCCPC) has unequivocally dismissed allegations suggesting its responsibility for the recent nationwide shutdown of airtime and data borrowing services. In a statement released on Friday by its Director of Corporate Affairs, Onadaje Inagwu, the commission labeled the viral social media claims as “incorrect,” asserting that no directive was issued to halt operators from providing XtraTime services to customers. The FCCPC clarified that it has neither prohibited airtime borrowing nor data advance services, nor has it issued any directive preventing consumers from accessing lawful telecom value-added services.

However, telcos such as MTN and Airtel have temporarily suspended their airtime borrowing and data advance payment services. They cited the necessity to comply with the FCCPC’s new digital lending regulation, the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON). This development sparked considerable public reaction on social media, with many mistakenly attributing the temporary suspension of XtraTime service to the Commission.

Providing comprehensive justifications for the introduction of DEON, the FCCPC emphasized that the new rule is designed to bolster consumer protection against various unfair practices prevalent among digital lenders. The Commission highlighted numerous complaints from customers concerning opaque charges, unexplained deductions, aggressive recovery tactics, and inadequate disclosure standards. It stated that the Regulations were introduced, among other reasons, to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market.

The DEON regulations, according to the FCCPC, aim to enforce accountability among operators, restore fairness and transparency, ensure responsible lending practices, mandate clear disclosure of fees and terms, establish accessible consumer complaint channels, and implement robust data protection safeguards. The commission also noted that the ongoing adjustments by telecom operators are in compliance with these ethical lending practices.

The FCCPC revealed that telcos were initially given a 90-day compliance period after the framework's launch in July 2025 to restructure their operations. However, this opportunity was not fully utilized within the prescribed timeframe, particularly in the telecom sector. Consequently, the compliance window was extended until January 5, 2026, to allow for additional alignment with applicable requirements. Despite this extension, some operators were still unable to complete the necessary compliance steps. The FCCPC stated, “Some operators chose to maintain the status quo by failing to register and regularise their services. In doing so, they continued operating monopolistic models that had long generated consumer complaints.” The Commission reiterated that any suspension of the XtraTime service imposed by telcos in compliance with DEON is a decision made by the operators themselves, not a ban imposed by the FCCPC.

The commission also identified unfair practices where some telcos authorized select merchants to run the service at the expense of others. It clarified that while the market is open for equal and fair practices, such actions constitute a clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018. Ultimately, the FCCPC affirmed that all measures it introduced are aimed at restoring consumer confidence and promoting ethical practices, especially concerning crucial services like digital lending.

Concurrently, Airtel Nigeria announced the temporary suspension of its airtime and data credit services, which enable prepaid users to borrow tariff and repay on their subsequent recharge. A statement from Airtel Nigeria confirmed that this decision stems from the need to align with operating requirements for digital lending services in Nigeria, describing it as “a necessary and responsible step.” Ismail Adeshina, Airtel Nigeria’s Director of Marketing, reiterated the telco’s commitment to compliance, transparency, and consumer protection, while continuing to innovate responsibly. During this temporary suspension, subscribers will still have access to other related services, including airtime and data purchases through various channels, and the telco anticipates no material financial impact on its services or operational quality nationwide.

Airtel Nigeria's announcement closely followed MTN's suspension of its XtraTime service, also citing compliance with the DEON regulations. The DEON rule, under the guidance of the FCCPC, mandates companies offering digital lending services to obtain proper licenses, adhere to stricter compliance standards, and adjust loan recovery measures. This regulation governs a broad spectrum of digital lending services, including airtime credit, loan applications, and 'buy now, pay later' (BNPL) schemes. The suspension by telcos occurs at a time when Nigerians are increasingly engaging online, driven by a surge in smartphone penetration, enhanced financial inclusion, and a narrowing digital divide. For instance, Airtel Nigeria’s revenue reached $1.13 billion in the nine months ending December 2025, largely propelled by data earnings of $576 million. Data usage per customer grew by 26.2% to 10.7 GB per month, with smartphone penetration increasing by 4.6% to 54.1%, and smartphone data usage per customer reaching 13.4 GB per month.