Economy

FCCPC Clarifies No Ban on Airtime Borrowing, Blames Misinterpretation of Regulations

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The Federal Competition and Consumer Protection Commission has clarified that it has not banned airtime borrowing or data advance services in Nigeria, dismissing widespread claims suggesting otherwise as inaccurate.

The clarification follows the decision by MTN Nigeria to suspend its popular airtime and data credit service, Xtratime. The telecom operator had cited compliance with the Digital Economy and Online Lending regulations introduced in 2025 as the reason for the move.

In a statement released on Friday, the FCCPC stressed that it did not issue any directive prohibiting consumers from accessing lawful telecom value added services. It explained that any disruption currently experienced by users is the result of business or compliance decisions made by service providers, not regulatory enforcement.

The commission noted that its intervention in the sector was prompted by numerous consumer complaints, including opaque charges, unexplained deductions, aggressive debt recovery tactics, and poor transparency in service terms. To address these issues, it introduced the Digital Economy and Online Lending regulations in July 2025 under the Federal Competition and Consumer Protection Act 2018.

According to the agency, the regulations are designed to ensure fairness, transparency, and accountability in the provision of digital lending services. Key provisions include mandatory registration of service providers, clear disclosure of fees, improved complaint resolution mechanisms, and stronger data protection safeguards.

The FCCPC added that operators were initially given a 90 day compliance window, which was later extended to January 5, 2026, to allow sufficient time to align with the new rules. However, some providers failed to meet the requirements and continued operating under models that had previously triggered consumer concerns.

The commission also accused certain vested interests of spreading misinformation to undermine regulatory efforts, warning that such narratives mislead the public and distort the intent of the policy.

Reaffirming its position, the FCCPC stated that its goal is not to restrict access to services but to create a more transparent and competitive market that protects consumers while encouraging responsible innovation in the telecom sector.

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