The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that it has not banned airtime borrowing or data advance services in Nigeria, pushing back against claims that recent disruptions were the result of regulatory action.
The clarification follows the decision by MTN Nigeria to suspend its popular airtime and data credit service, Xtratime, citing compliance with the Digital, Electronic, Online or Non-Traditional (DEON) consumer lending regulations introduced in 2025.
In a statement issued on Friday, the commission described reports suggesting a ban as “incorrect,” stressing that it had not issued any directive preventing consumers from accessing telecom value-added services.“The commission has not prohibited airtime borrowing or data advance services, and no directive was issued preventing consumers from accessing lawful telecom value-added services,” the FCCPC said. The regulator explained that its intervention was driven by persistent consumer complaints, including opaque charges, unexplained deductions, aggressive recovery practices, and poor disclosure standards among some service providers.
To address these issues, the FCCPC introduced the DEON consumer lending regulations in July 2025 under the Federal Competition and Consumer Protection Act (2018), establishing a framework for registration, transparency, and ethical lending practices.“The regulations were introduced to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market,” the commission said.
According to the agency, operators were initially given a 90-day window to comply with the rules, which was later extended to January 5, 2026. However, some providers failed to meet the deadline and continued operating under models that had attracted regulatory scrutiny. The commission emphasised that any suspension or operational changes by telecom companies should be viewed as independent business or compliance decisions rather than a directive from the regulator.“Any temporary suspension, restriction, or operational change introduced by service providers should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC,” it said.
FCCPC also noted that part of the reform effort is aimed at addressing anti-competitive practices in the sector. The agency alleged that some telecom operators engaged in exclusionary arrangements in violation of the law, adding that the new framework is designed to open up the market and promote fair competition.
The commission further accused certain interests of spreading misinformation to undermine the reforms, warning that misleading narratives risk distorting public understanding of consumer protection policies.“It is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply,” the agency said, urging Nigerians to disregard “sensational claims.”
Reaffirming its mandate, the FCCPC said it remains committed to protecting consumers, strengthening transparency, and ensuring accountability across Nigeria’s rapidly evolving digital lending and telecom services ecosystem.
