FCCPC Clarifies Position on Airtime, Data Advances, Denies Service Ban

Olufemi Adeyemi Amid growing public confusion and mixed reports across traditional and social media platforms, the Federal Competition and Consumer Protection Commission (FCCPC) has moved to clarify that it has not placed any ban on airtime borrowing or data advance services in Nigeria. The clarification follows recent developments involving MTN Nigeria, which announced the suspension of its popular airtime and data credit service, “Xtratime,” citing compliance requirements under the newly introduced Digital, Electronic, Online or Non-Traditional (DEON) consumer lending regulations, 2025. The regulations, officially gazetted and effective from July 21, 2025, represent a significant shift in how digital lending and related value-added financial services are governed in the country. According to the FCCPC, they were introduced under the framework of the Federal Competition and Consumer Protection Act (2018) to address longstanding concerns around consumer protection in the rapidly expanding digital credit ecosystem. Regulatory framework born out of consumer complaints The commission explained that the regulatory intervention was necessitated by widespread consumer complaints involving opaque deductions, unclear service charges, aggressive debt recovery tactics, and inadequate disclosure practices by some service providers operating in the telecom-linked lending space. In response, the FCCPC said it rolled out the DEON regulations in July 2025 to establish a structured and transparent system for digital lending operations. Key provisions include mandatory registration of operators, clearer disclosure of fees and terms, responsible lending practices, improved consumer complaint mechanisms, strengthened data protection safeguards, and enhanced oversight of third-party service partners. By September 2025, the commission had already indicated that the regulations would serve as a comprehensive framework aimed at restoring consumer confidence and ensuring ethical conduct within the sector. Compliance timeline and enforcement expectations To facilitate compliance, operators were initially given a 90-day window beginning in July 2025. This deadline was later extended to January 5, 2026, to allow affected service providers additional time to regularise their operations in line with the new requirements. However, the FCCPC noted that not all operators complied within the stipulated timelines, with some continuing to operate under models that had previously generated consumer complaints and regulatory concerns. It was in this context that some telecom operators, including MTN Nigeria, opted to temporarily suspend or modify their airtime and data advance offerings, a move the commission stressed should not be interpreted as regulatory prohibition. No ban on telecom value-added services Addressing the misinformation circulating online, the FCCPC firmly stated that no directive has been issued to stop consumers from accessing lawful telecom value-added services such as airtime borrowing or data advances. “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. The agency further clarified that any service suspension or operational adjustment currently being observed in the market is a business or compliance decision made by service providers themselves, not an enforcement action taken by the regulator. Market competition and anti-exclusion concerns The FCCPC also highlighted that part of its intervention was aimed at addressing restrictive arrangements within the sector, which it said were contrary to the Federal Competition and Consumer Protection Act (2018). According to the commission, such practices had limited competition and affected consumer choice in the digital financial services ecosystem. The new framework, it added, is designed to open up the market, encourage fair competition, and ensure that no dominant players engage in exclusionary practices that could distort the industry. Pushback against misinformation Reacting to narratives suggesting that the regulatory framework was responsible for service disruptions, the commission described such claims as misleading and inaccurate. “It is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply,” the FCCPC stated. It also warned against what it described as deliberate attempts by vested interests to misrepresent compliance-related adjustments as regulatory bans, insisting that such narratives distort public understanding of ongoing reforms. “Attempts to misrepresent temporary service inconvenience as the result of lawful consumer regulation are mischievous. Nigerians deserve accurate information, not sensational claims,” the agency added. Commitment to consumer protection and transparency Reaffirming its stance, the FCCPC emphasized its continued commitment to protecting consumers, ensuring fair market practices, and strengthening transparency within Nigeria’s digital financial services sector. The commission urged the public to disregard misleading reports and rely on verified regulatory communications, noting that the ongoing reforms are ultimately aimed at building a safer, more accountable, and more competitive digital lending environment.