Why MTN, Airtel, Glo, others are resuming voice and data lending services after a 5-week suspension

Five weeks after Nigerian mobile network operators (MNOs) announced the suspension of voice and data lending services (XtraTime), almost all telcos are back in the game. 

Earlier this week, Airtel and Globacom restored the services, with checks showing that it was quietly reactivated on Monday. While MTN and T2mobile (formerly 9mobile) are yet to resume the offering, MTN is showing indications that the lending service will be available for usage very soon. 

Within the five weeks of suspension, there were back-and-forths in the industry, emanating from the Federal Competition and Consumer Protection Commission (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON) framework.

The rule introduces new lending requirements focused on transparency, accountability, fairness, and consumer protection in the XtraTime services. 

Recall that telcos originally suspended the XtraTime services, citing the need for time to comply with the FCCPC’s DEON regulations. While they didn’t state when the service would be restored, there were industry rumours that telcos suspended the service to recover the debts accumulated from the service from subscribers. 

The XtraTime service, worth N400 billion yearly, has been saving Nigerians who are caught in the middle of financial pressures. Through the recharge and pay back later at a 15% interest, subscribers are able to make calls or connect online even when they are low on airtime.

The service also became essential at a time when Nigerians are spending more time online, driven by a spike in smartphone penetration, financial inclusion, and how the digital divide is adjusting. 

During the suspension period, subscribers could only access airtime and data advances from banks offering the service. Subscribers who can’t meet the bank terms are left to adjust to being without XtraTime.

Also Read: MTN and Airtel made nearly N100 billion from voice and data lending in Q1 2026.

XtraTime restoration: What changed?

Following the suspension, there were court cases emanating from the implementation of DEON on telcos. 

For instance, the Wireless Application Service Providers Association of Nigeria (WASPAN) challenged both the rule’s legality and FCCPC’s regulatory powers within Nigeria’s digital economy and telecoms industry at the Federal High Court in Lagos. It was on the grounds of regulatory clash and the need for clarity on what works.

The association argued that certain provisions of the regulations would negatively affect its members and needed to be challenged in court.

Before the suspension of the XtraTime service by telcos, the high court in Lagos had temporarily blocked the FCCPC from enforcing parts of its 2025 digital lending regulations. While the DEON rule was temporarily unbinding on telcos, telcos still went on with the suspension. 

In response, FCCPC noted that the timeline meant for telcos to adjust to the guidelines provided in the framework had already elapsed in January. It distanced itself from forcing telcos to suspend a critical service that has been beneficial to millions of Nigerians. 

“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,” it said in a statement issued in April. 

In addition, there was a court action filed by Nairtime Nigeria Ltd, a subsidiary of global AI-powered financial infrastructure group Optasia. In its ruling, the Federal High Court, Abuja Judicial Division, directed telcos to restore XtraTime services. 

However, there were claims that telcos originally suspended the XtraTime services to recover outstanding amounts emanating from the digital lending. Also, unverified claims supported the notion, stressing that telcos recovered N2 trillion within the first three days of suspension. 

The pause in lending led to strict debt-recovery measures, helping the telcos recover billions from debtors. During the period, subscribers can only make calls or browse the internet until they clear their outstanding balances. 

Telcos recovered their money from debtors, and they are back in business. 

Have telcos complied with the DEON rule?

The FCCPC vs WASPAN is still before the Federal High Court, and the judgment that decides the legality of the DEON rule in the telecoms industry has been reserved until July 20, 2026. 

There are no official statements or industry pronouncements to verify whether telcos have now complied with the rule. However, MTN and Airtel, while announcing the suspension in April, noted that the XtraTime service will be restored after compliance.

“Airtel Nigeria remains committed to the highest standards of compliance, transparency, and consumer protection, while continuing to innovate responsibly within Nigeria’s digital ecosystem,” Airtel said in the statement. 

On its part, MTN, earlier this month, gave conditions for the restoration of the airtime and digital lending services. 

While responding to questions during the company’s Q1 2026 earnings presentation in May, Tobechukwu Okigbo, MTN Nigeria’s Corporate Services and Sustainability Officer, said the service can also be restored, provided there’s a court ruling that removes FCCPC from regulating telcos’ digital lending services.

Another condition was that it would be restored once it complied with the FCCPC’s regulatory provisions for data lending (DEON). 

With MTN set to call off the suspension, more vendors are expected to be onboarded through the operator. This comes after the FCCPC licensed five new providers, thereby creating options. 

“We are exploring these alternatives to diversify and reduce reliance on a single provider going forward,” said Karl Toriola, MTN Nigeria CEO, during its earnings call.