- The FCCPC has rvaed that it has not banned airtime borrowing or data advance services
- The commison describing reports and social media claims suggesting a shutdown as false and misleading.
- It explained that the DEON Consumer Lending Regulations introduced in July 2025 aim to improve transparency
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The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed reports that it has ban airtime borrowing or data advance services in Nigeria.
The Commission in a statement on Friday, April 17 said there is no directive of that nature had been issued to the telcos and described the reports and claims as misleading.
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According to the FCCPC, the confusion stems from the introduction of the DEON Consumer Lending Regulations in July 2025, which were designed to address rising consumer complaints in the digital lending and value-added services ecosystem.
FCCPC said:
“The attention of the Federal Competition and Consumer Protection Commission has been drawn to a series of newspaper publication and a viral anonymous post in the social media seeking to create the impression that the Commission cancelled, shut down, or banned airtime borrowing and data advance services in Nigeria.
“Those claims are incorrect. 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.”
The Commission noted that it received numerous complaints relating to opaque charges, unexplained deductions, aggressive debt recovery practices, weak disclosure standards, and poor accountability among some service providers, prompting the regulatory framework.
The statement continued:
“Following a deluge of consumer complaints bordering on opaque charges, unexplained deductions, aggressive recovery practices, poor disclosure standards, and inadequate accountability in segments of the digital lending and advance-services market, the Federal Competition and Consumer Protection Commission issued the DEON Consumer Lending Regulations in July 2025.
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It further explained that the regulations aim to improve transparency, enforce responsible lending practices, ensure proper disclosure of fees and terms, strengthen data protection, and enhance oversight of third-party arrangements in the sector.
“The Regulations were introduced, among other reasons, to curb the excesses of abusive service providers whose practices had generated persistent consumer harm and undermined confidence in the market.
“The primary aim is to promote a fairer and more transparent system by mandating proper registration, responsible lending conduct, clear disclosure of fees and terms, accessible consumer complaint channels, data protection safeguards, stronger accountability for third-party partners, and effective regulatory oversight.”
The FCCPC also noted that some telecom sector operators were found to have engaged in exclusionary technical arrangements contrary to provisions of the Federal Competition and Consumer Protection Act, 2018, adding that the rules were intended to promote fair competition and open access to the market.
It said operators were initially given a 90-day compliance window starting in July 2025 to regularise their operations, which was later extended to January 5, 2026, due to slow compliance, particularly in the telecom segment.
Despite the extensions, the Commission said some operators failed to fully comply, choosing instead to maintain existing structures that had generated consumer concerns around transparency and accountability.
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The FCCPC emphasised that any service disruption should not be attributed to regulatory action, but rather to compliance decisions by operators who had been given adequate time to adjust.
The commission concluded:
“Any temporary suspension, restriction, or operational change introduced by service providers should therefore be understood as a business or compliance decision by those operators, not a ban imposed by the FCCPC.
“It is inaccurate to attribute avoidable disruption to regulation where regulated entities had adequate notice and sufficient opportunity to comply.
“Attempts to misrepresent temporary service inconvenience as the result of lawful consumer regulation are mischievous. Nigerians deserve accurate information, not sensational claims. Consumers and members of the public are advised to disregard false and misleading narratives on this issue.”
MTN suspends airtime, data borrowing
Legit.ng earlier reported that MTN Nigeria has explained its decision to temporarily suspend airtime and data lending services, popularly known as Xtratime.
In a corporate filing to the Nigerian Exchange Limited on Thursday, April 16, the telecom giant said that its decision is due to new regulatory requirements governing digital lending in Nigeria.
MTN noted that the suspension is part of efforts to comply with the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
Source: Legit.ng
