FCCPC debunks claims it triggered suspension of airtime and data borrowing

The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed claims that it is responsible for the sudden shutdown of airtime and data borrowing services nationwide.

According to a statement issued by the commission on Friday, signed by the Director of Corporate Affairs, Onadaje Inagwu, it described the viral claims on social media as “incorrect”, noting that no directive was issued to stop operators from providing XtraTime services to customers.

“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,” part of the statement reads. 

Recall that telcos such as MTN and Airtel have temporarily suspended their airtime borrowing and data advance payment service, citing the need to adjust to the FCCPC’s digital lending rule, Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON).

The development triggered reactions on social media, which suggested that the Commission was responsible for the temporary suspension of the XtraTime service 

Providing justifications for introducing DEON, the commission noted that the rule seeks to cater to customer protection in light of various unfair practices by digital lenders. The commission said customers have lodged complaints about opaque charges, unexplained deductions, aggressive recovery practices, and poor disclosure standards.

“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,” it added. 

FCCPC stressed that DEON seeks to make operators accountable for their actions, restore fairness and transparency, enforce responsible lending, ensure clear disclosure of fees and terms, accessible consumer complaint channels, and data protection safeguards.

It stated that ongoing development by telecom operators complies with adjustments to ensure ethical lending practices. 

Also Read: Airtel Nigeria suspends airtime and data borrowing to align with lending requirements.

XtraTime suspension: Telecom operators reacted late

According to the FCCPC’s statement, telcos were given time to ensure compliance with DEON. 

After the launch of the framework in July 2025, the commission noted that operators were granted a 90-day compliance period to restructure their operations. However, it noted that the “opportunity was not utilised within the prescribed timeframe, specifically in the telecom sector.”

FCCPC noted that the compliance window was then extended until 5 January 2026, providing additional time for alignment with applicable requirements. Despite the extension, operators were still unable to complete necessary compliance steps.

“Some operators chose to maintain the status quo by failing to register and regularise their services. In doing so, they continued operating monopolistic models that had long generated consumer complaints,” it added. 

FCCPC stressed that any suspension imposed by telcos on the XtraTime service in compliance with DEON is a decision by operators and not a ban imposed by the commission.

Unfair practice

The commission identified unfair practices where some telcos authorised select merchants to run the service at the expense of others.

While the market is open for the purposes of equal and fair practices, FCCPC noted that such action is a clear disobedience to the provisions of the Federal Competition and Consumer Protection Act, 2018.

However, the commission said any measures it introduced aim to restore consumer confidence and promote ethical practices, especially on crucial services such as digital lending.