The Federal Competition and Consumer Protection Commission (FCCPC) has approved five companies as airtime and data lenders as new regulations forced all mobile network operators (MNOs) to suspend the services.
While MTN and Airtel officially announced the suspension of the services last week, checks by Nairametrics confirmed that Globacom and T2 (formerly 9mobile) have also done the same, making it an all-MNO decision.
In their place, FCCPC said five firms including Total Tim Nigeria Limited, Rane Interractive Medien CLS Limited, Mode NG Applications Limited, Cloud Interractive Associate Limited, and Coverage Broadband Limited, have been approved as airtime/data lenders in the country.
What they are saying
According to the FCCPC, the five companies have met all the requirements to provide the services as stipulated in the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025.
While the telecom operators have cited compliance issues with the new consumer lending regulations as the reason for the suspension of the services, the FCCPC said the primary aim of the regulation is to promote a fairer and more transparent system in digital lending.
According to the Director of Corporate Affairs at the NDPC, Ondaje Ijagwu, some telecom operators were found to be “engaging in exclusionary third-party technical arrangements in clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018.”
- “The Regulations sought to unlock the market to allow local participants alongside foreign partners, in line with free market principles,” he said.
He added that at the commencement of the framework in July 2025, affected operators were granted an initial 90-day compliance period to regularise their products, structures, and operations.
- “That opportunity was not utilised within the prescribed timeframe, specifically in the telecom sector.
- “The compliance window was subsequently extended until 5 January 2026, providing additional time for alignment with applicable requirements. Despite that further extension, the necessary compliance steps were still not completed by the relevant operators,” Ijagwu said.
More insights
For the telecom operators, the FCCPC’s regulatory requirements compound the existing issue of multiple regulations in the telecom sector.
- “Telcos are enablers of other sectors and we are fully regulated by the Nigerian Communications Commission (NCC). Subjecting us to all forms of compliance from different regulators is a distraction,” said an official of one of the telcos, who would not want to be named because he was not authorized to speak.
Asked when the MNOs are likely to comply with the FCCPC’s regulations and resume the services, he said: “For now, we just want to step aside and watch.”
He admitted that the operators would lose some revenue from the suspension of the services.
However, the telecom operators are still indirectly involved as the airtime to be sold by the approved lenders will still come from them.
According to him, the licensed lenders will sign a deal with the network operators to be able to provide the services. This will involve sharing of returns with the network providers.
A big blow to subscribers
While the telcos may lose a fraction of their revenue by suspending the services, the bigger losers in the scenario playing out appears to be the subscribers, especially those who rely heavily on airtime borrowing.
- With the suspension of the services, the *303# code which all the MNOs use for the services is no longer offering the relief that many enjoyed in times of emergency.
- Seun Adeleke, a Lagos resident, said the airtime borrowing service had been highly useful, noting that it helps him manage urgent communication needs when cash is limited.
- He, however, warned that suspending the service could worsen financial pressure on ordinary Nigerians who rely on it for quick access to airtime.
Another subscriber, Rachael Oluwajoba, said the suspension of the services that have been saving Nigerians in moments of emergencies is a heavy blow to the subscribers. According to her, many subscribers, who relied on the services would become stranded.
Get up to speed
Last week, MTN informed the general public and shareholders that it has temporarily suspended its airtime and data lending services known as “Extratime.”
- “This 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,” the company stated.
MTN said customers would continue to have access to other digital channels for purchasing airtime and data while the service remains suspended.
The company also assured investors that the temporary halt is not expected to significantly affect earnings.
Airtel Nigeria followed suit with the same announcement saying it has temporarily suspended its airtime and data credit services.
The company said customers would continue to enjoy uninterrupted access to airtime and data purchases through its existing channels despite the temporary suspension.
The company also stated that the development is not expected to materially affect service standards across the country.
What you should know
The FCCPC had earlier fixed October 31, 2025 as the deadline for all digital lenders in the country to get registered or face a fine of N100 million fine.
Nairametrics reported that the race to beat the deadline had led to a surge in the number of registered digital lenders in the country with the number jumping to 492 in October.
However, the Commission later announced the extension of the deadline to January 5, 2026 to allow full compliance.
Too many formalities and grammar over a product that is just a value added service. Stop looking for means to harden hardship.
But FCCPC said it didn’t instruct the MNOs to suspend data and airtime borrowing, who are they fooling?
So, how do we access the loan from these newly approved companies, are we going to subscribe to them as new customers? I think they are just trying to help these people make money and they will collect their own share.
This is highly commendable, only when you asked for airtime credit should you be loaned not like some of us experienced with some service provides who fraudulently debit their customers airtime in the name of Xtravalue.
Who exactly are these five companies (Total Tim, Rane Interactive, Mode NG, Cloud Interactive, Coverage Broadband)?
Do they have any track record in lending or telecom services?
Are they Nigerian-owned or mostly foreign-backed?
How financially strong are they—can they handle millions of users?
About how the service will work now
Will the borrowing process still use USSD (like *303#), or will it move to apps only?
Will you need to download a separate app to borrow airtime/data?
How fast will approvals be compared to the old instant system from MTN/Airtel?
Will it still work offline (important for many Nigerians)???