Court Orders MTN, Airtel to Restore Airtime Borrowing, As New Lenders Emerge
Court Orders MTN, Airtel to Restore Airtime Borrowing, As New Lenders Emerge
By Temidayo Badmus
A Federal High Court has ordered telecom operators MTN Nigeria and Airtel Nigeria to restore airtime and data borrowing services, weeks after a regulatory clampdown disrupted access for millions of subscribers.
The services were suspended in mid-April following new rules by the Federal Competition and Consumer Protection Commission (FCCPC), which classified airtime borrowing as a form of digital credit requiring stricter oversight and licensing.
The suspension affected widely used airtime and data advance options, leaving many users unable to access emergency credit through USSD channels.
The court, however, directed the operators to maintain status quo and restore the services pending the outcome of an ongoing legal dispute.
The FCCPC’s intervention signals a major restructuring of the airtime lending market. Under the new framework, telecom operators are expected to step back from directly offering credit services, as licensed independent firms take over the business.
At least five companies have already been approved to operate in the space, marking a shift toward a more regulated digital lending system.
The new operators will handle credit assessment, disbursement and recovery, while telcos may partner with them.
Regulators say the move is aimed at strengthening consumer protection and ensuring transparency in lending practices.
Despite the court-ordered restoration, industry watchers say airtime borrowing may return in a modified form, with stricter eligibility conditions and possible changes to access channels.
