Respite for millions of Nigerian subscribers as MTN restores airtime lending

…Ends weeks of regulatory uncertainty

A leading telecommunications company, MTN, has restored its airtime lending service to millions of its subscribers ending weeks of disruption caused by a regulatory dispute that affected one of Nigeria’s largest digital credit ecosystems.

This move followed similar actions taken by Airtel and Glo after the suspension of enforcement of aspects of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, which had triggered uncertainty over the operation of airtime and data advance services.

Industry stakeholders estimate that about 40 million subscribers rely on airtime lending, with the ecosystem valued at between N300 billion and N400 billion annually.

For many subscribers, the return of the service restores access to an emergency option used to stay connected to work, banking services, businesses and family during difficult moments.

Among those welcoming the development is Farouk Rabiu, an employee of a Lagos-based firm, who recalled the frustration he experienced when the service was suspended.

According to Rabiu, the first time he realised that he could no longer borrow credit on Glo and MTN came as a big surprise, adding that he was devastated because, after exhausting his data, he was hoping to borrow credit to access his bank account. Instead, it was a major disappointment.

Although he acknowledged that the charges associated with airtime borrowing could sometimes be high, he said the service remained indispensable.

“They do save you from some unnecessary embarrassment. I missed having that option,” he said.

Rabiu’s experience reflects concerns raised by the other subscribers, who argued that the disruption highlighted the growing importance of airtime lending to millions of Nigerians.

Gbenga Adebayo, chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), said the episode demonstrated that airtime credit had evolved beyond a conventional telecommunications service.

“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” Adebayo said.

ALTON warned that the disruption posed risks to consumer welfare, investor confidence and regulatory certainty in an industry worth between N300 billion and N400 billion annually.

Wireless Application Service Providers’ Association of Nigeria (WASPAN), which challenged aspects of the FCCPC regulations in court, said its legal action was aimed at protecting licensed Nigerian operators and millions of subscribers who depend on airtime and data advances.

According to the association, the service has become an important support mechanism for traders, artisans, small business owners and other Nigerians with limited access to conventional credit.

The FCCPC, however, maintained that its intervention was driven by consumer protection considerations.

The commission classified airtime and data advances as a form of consumer lending under its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, arguing that stronger regulatory oversight was necessary to improve transparency and accountability in the digital credit market.

Following court orders and growing opposition from industry stakeholders, the commission suspended enforcement of the disputed regulations pending the determination of the substantive suit.

Ondaje Ijagwu, FCCPC Director of Corporate Affairs, said the commission decided in obedience to the rule of law while continuing to pursue its legal arguments before the court.

While the legal dispute continues, the restoration of the service means millions of subscribers can once again access emergency airtime and data advances that have become an integral part of everyday digital connectivity in Nigeria.