The Federal Government has ordered the deregulation of Nigeria’s airtime credit market. The move ends the old system where telecom giants ran airtime borrowing services through a single foreign partner.
Under the new rules from the Federal Competition and Consumer Protection Commission, telcos like MTN and Airtel must now work with at least two licensed companies to offer airtime and data loans and one must be Nigerian-owned.
The FCCPC says the change will stop capital flight. Between 2019 and 2023, MTN alone generated over 5.6 trillion naira from airtime advances, with 25 percent of revenue going to a South African firm.
MUST READ: I didn’t promise APC tickets for senators who lost primaries – Akpabio
The Commission says all four major mobile operators suspended their borrowing services in April after failing to fully comply with new digital lending regulations. Five Nigerian fintechs have now been approved to take over the service.
So, what does this means for subscribers? Telcos will still provide the airtime, but licensed lenders will handle the credit, onboarding, and repayment. The FCCPC insists airtime borrowing has not been banned, only restructured to boost transparency and keep profits in Nigeria.
