Aritime Lending: Could Airtel and Glo Gain Market Share While MTN Delays XtraTime Return?

Online or Non-Traditional Consumer Lending (DEON) Regulations has triggered fresh debate within Nigeria’s telecommunications industry about the potential competitive implications of MTN Nigeria’s continued suspension of its XtraTime service

Aritime Lending: Could Airtel and Glo Gain Market Share While MTN Delays XtraTime Return?

The decision by Airtel Nigeria and Globacom to restore their airtime lending services following the suspension of enforcement of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations has triggered fresh debate within Nigeria’s telecommunications industry about the potential competitive implications of MTN Nigeria’s continued suspension of its XtraTime service.

Industry stakeholders say that while MTN’s cautious response to the regulatory uncertainty surrounding the DEON regulations was understandable, the prolonged absence of one of its most popular value-added services could create opportunities for competitors in a market where customer experience and service accessibility remain critical factors in subscriber retention.

The FCCPC had announced that it was suspending enforcement of the regulations in compliance with an interim injunction issued by the Federal High Court in Lagos. 

The development effectively removed the immediate regulatory cloud hanging over airtime lending services and enabled operators to resume operations pending the determination of the substantive suit.

Airtel quickly restored its Extra Credit service, while Globacom reactivated its Borrow Me Credit platform, allowing subscribers once again to access emergency airtime advances through the unified *303# code.

However, MTN’s XtraTime service remains unavailable despite the same legal protections now available to all operators.

Analysts note that airtime lending has evolved far beyond a simple customer convenience. Over the years, it has become an important support mechanism for millions of Nigerians who rely on their mobile phones for business, commerce and everyday communication.

For petty traders, artisans, dispatch riders, transport operators and small business owners, airtime borrowing often provides immediate access to communication tools during temporary cash shortages.

In many cases, the service enables users to conclude business transactions, contact suppliers, receive customer orders and coordinate commercial activities.

Industry estimates place the annual airtime and data lending market at more than ₦400 billion, while broader transaction estimates suggest the ecosystem may be worth over ₦1 trillion.

Given MTN’s position as the country’s largest telecommunications operator, stakeholders believe a substantial share of those transactions historically flowed through XtraTime.

This is why some analysts believe the longer the service remains unavailable, the greater the possibility that affected subscribers could begin exploring alternative networks that offer similar services.

“The Nigerian telecom market is highly competitive,” said an industry observer,.adding “When customers become accustomed to accessing a service elsewhere, there is always the possibility that usage patterns could gradually shift.”

Such concerns are particularly relevant at a time when operators are intensifying efforts to grow both subscriber numbers and fintech-related revenues.

MTN itself has demonstrated the importance of digital financial services to its future growth strategy. 

In the first nine months of 2025, the company’s fintech division generated more than ₦131 billion in revenue, with XtraTime contributing significantly to that performance.

The commercial value of the service helps explain why the company initially chose a cautious path when the regulatory environment became uncertain.

Under the DEON regulations, operators faced the possibility of administrative sanctions that included fines of up to ₦100 million or one per cent of annual turnover for non-compliance.

For a company of MTN’s scale, such penalties represented significant financial exposure.

Industry experts generally agree that the company’s decision to suspend XtraTime was rooted in prudent corporate governance and responsible risk management.

MTN’s Chief Corporate Services and Sustainability Officer, Tobechukwu Okigbo, had maintained that the operator would require either a court ruling setting aside the regulations or a clear directive authorising the restoration of the service before taking further action.

However, observers point out that the legal landscape has since become more stable.

The interim injunction issued by the Federal High Court remains in force, preventing enforcement actions against operators and service providers. In addition, earlier legal disputes associated with the matter have been resolved, while the FCCPC has publicly affirmed its commitment to complying with the court’s directive.

The substantive case is expected to continue later this year, but many stakeholders believe the immediate threat of punitive regulatory action has significantly diminished.

They also point to the intervention of the Presidential Enabling Business Environment Council (PEBEC), which directed government agencies to suspend regulatory changes that did not undergo the required Regulatory Impact Analysis process.

These developments have encouraged calls for a broader industry return to normal operations.

For many subscribers, particularly those in low-income segments of the market, the issue is not merely about convenience. 

With inflation continuing to squeeze household budgets, emergency airtime credit has become an important financial cushion that helps consumers remain connected even during periods of financial strain.

Industry stakeholders argue that restoring access to such services across all major networks would improve customer experience, strengthen financial inclusion and support economic activity among millions of Nigerians who depend on mobile communications for their livelihoods.

While few expect MTN to compromise its compliance standards or corporate governance principles, there is growing sentiment within the industry that the conditions that justified the initial suspension have changed considerably.

As Airtel and Globacom continue to offer airtime lending services to their subscribers, attention is increasingly turning to whether MTN can afford to remain on the sidelines of a market segment that has become both commercially valuable and socially significant.

At present, the country’s largest telecom operator remains cautious. 

But as competition intensifies and consumers continue to seek flexible communication solutions, industry watchers believe the pressure to restore XtraTime may continue to grow.