MTN Nigeria has had to temporarily suspend its airtime and data credit advance service as it works to comply with new laws around non-traditional lending in that country.
The service, known as “Xtratime” is a product that advances small amounts of airtime to customers with little to no credit balance, repayable when customers recharge accounts.
The product, also offered by the company in South Africa, tends to be a lifeline for those under financial pressure but who still need to communicate.
Africa’s largest mobile provider said the matter relates “to the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new compliance and licensing framework for entities providing digital or non-traditional consumer credit services” with effect from April 12.
Given the impact that such regulatory rule changes have had on its business historically, MTN sought to allay fears that the move would hurt its earnings.
The Federal Competition and Consumer Protection Commission’s new rule has the effect of expanding oversight of digital lending to include telecom and other providers of short-term credit
“Given the scale of Xtratime within the overall MTN Nigeria revenue mix, we do not expect the temporary suspension to have a material impact on [the] financial performance of MTN,” it said.
“We are closely monitoring customer behaviour and usage trends.”
The Federal Competition and Consumer Protection Commission’s new rule has the effect of expanding oversight of digital lending to include telecom and other providers of short-term credit. This means companies like MTN that advance airtime and data are required to register and obtain new approvals to continue such operations.
MTN Nigeria said customers can still purchase airtime and data using other channels. The group said it will provide an update “on any quantified impact on financial performance” in its first-quarter financial results.
Airtime advance has become a big contributor to revenue from financial services for mobile providers.
For rival Vodacom, in the 12 months to March 2025, airtime advance was one of the top three lines of business driving the company’s fintech growth in South Africa. Across its operations, the group said it facilitated 1.7-billion airtime advances. For the company the microloans translate to about half of the total prepaid recharges in South Africa.
Business Day
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.