Airtel joins MTN in suspending credit services as Nigeria tightens digital lending rules

Airtel Nigeria has temporarily suspended its airtime and data credit services, becoming the second major telecom operator to halt such offerings as Nigeria enforces stricter rules on digital lending.

The company said on Friday that the affected services, which allow prepaid users to borrow airtime or data and repay on their next recharge, will remain paused while it aligns with evolving requirements. Customers can still buy airtime and data through existing channels, Airtel added.

The move follows a similar decision by MTN Nigeria, which earlier suspended its Xtratime service citing new compliance obligations under regulations introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

Nigeria’s telecom operators are adjusting to the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which expand oversight of digital credit services.

The rules require all providers, including telecom firms offering airtime loans, to register and meet stricter consumer protection and transparency standards.

Ismail Adeshina, Airtel Nigeria’s director of marketing, said the suspension reflects a necessary and responsible step to ensure compliance, adding that the company remains committed to consumer protection and responsible innovation.

The coordinated pause by two of Nigeria’s largest telecom providers signals a broader industry shift, as regulators move to bring non-traditional lenders under tighter supervision.

Airtime and data credit services have become popular among millions of prepaid users, especially in a market where access to formal credit remains limited.

While both Airtel and MTN said the suspension is temporary and unlikely to materially affect earnings, the halt could disrupt short-term usage patterns among low-income subscribers who rely on borrowed airtime to stay connected between recharges.

For regulators, the new framework aims to curb abuses in the fast-growing digital lending space, including hidden charges and aggressive recovery practices.

The FCCPC has set compliance deadlines extending into 2026, warning that operators that fail to register could face sanctions.

Industry analysts say the development highlights a growing intersection between telecom services and financial regulation, as mobile operators increasingly offer quasi-banking products such as credit, payments, and mobile money.

The key question now is how quickly telecom firms can meet licensing requirements and relaunch the services without losing customer trust or market share.

Airtel said it will provide updates on the status of the suspension in due course.