• FCCPC denied claims that it banned airtime borrowing and data advance services
• The Commission said MTN and Airtel suspended the services due to compliance issues
• FCCPC blamed operators for failing to meet Consumer Lending Regulations introduced in July 2025

The Federal Competition and Consumer Protection Commission has denied reports that it banned airtime borrowing and data advance services in Nigeria.

The Commission said claims circulating online and in some media reports are false and misleading. According to the FCCPC, Nigerians can still access lawful airtime and data credit services.

The clarification follows recent announcements by MTN and Airtel that they had temporarily suspended airtime and data borrowing services for eligible prepaid customers.

In a statement released on Friday, April 17, by the Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said it never directed telecom operators to stop offering the 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 statement said.

Rather than a government ban, the FCCPC said the recent disruptions were caused by some operators failing to comply with the DEON Consumer Lending Regulations introduced in July 2025.

The Commission explained that the regulations were introduced after it received several complaints from consumers about hidden charges, unexplained deductions, poor disclosure of terms, aggressive debt recovery practices, and weak accountability among service providers.

According to the FCCPC, the rules were designed to make the market more transparent and protect consumers.

The regulations require service providers to properly register their operations, clearly disclose fees and repayment terms, provide complaint channels, protect consumer data, and ensure greater accountability among third-party partners.

The FCCPC also said some telecom operators had been engaging in anti-competitive practices through exclusionary agreements with third-party providers.

It said the regulations were meant to create a fairer market by allowing more local players to participate alongside foreign partners.

The Commission noted that operators were first given 90 days from July 2025 to comply with the new rules.

It later extended the deadline to January 5, 2026, but said several operators still failed to meet the requirements.

Because of this, the FCCPC said any suspension or restriction of airtime borrowing services should be seen as a business decision made by the affected operators and not as a regulatory ban.

“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,” the Commission stated.

The FCCPC also accused certain groups of spreading false information to frustrate the reforms.

It urged Nigerians to ignore sensational claims and rely on verified information, adding that it remains committed to protecting consumers, encouraging fair competition, supporting responsible innovation, and ensuring transparency in Nigeria’s digital lending and telecom sectors.

Airtime borrowing and data advance services remain important for millions of Nigerians who rely on them to make calls or access the internet before recharging.

However, the services have faced criticism over hidden charges, automatic deductions, unclear repayment terms, and recovery practices.

The FCCPC said its consumer lending rules are aimed at addressing these problems while ensuring that operators comply with standards designed to protect consumers.

MTN suspends xtratime service over new FCCPC lending rules

Meanwhile, TheRadar earlier reported that MTN Nigeria temporarily suspended its Xtratime airtime and data advance service following new consumer lending regulations introduced by the Federal Competition and Consumer Protection Commission.

The telecom company announced the move in a filing submitted to the Nigerian Exchange Limited, explaining that the suspension is necessary to comply with the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.