A Federal High Court has issued a decisive order directing major telecommunications operators MTN Nigeria and Airtel Networks Limited to restore airtime advance and data credit services, popularly known as XtraTime and similar borrowing platforms, following weeks of disruption that left millions of subscribers without access to emergency credit.
The ruling stems from a legal dispute involving regulatory actions tied to Nigeria’s evolving digital lending framework, which had triggered the temporary suspension of airtime and data credit services across major networks. The services, widely used by prepaid subscribers, allow customers to borrow airtime or data instantly and repay upon recharge, making them a critical financial lifeline for many low-income earners, traders, and small business owners...READ THE FULL ARTICLE HERE .
According to court proceedings, the suspension followed compliance concerns linked to the Federal Competition and Consumer Protection Commission’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations introduced in 2025. Telecom operators had earlier paused the services, citing the need to align with new licensing and compliance requirements under the regulatory framework.
However, the Federal High Court, in separate rulings delivered in Abuja and Lagos, restrained the enforcement actions that led to the suspension, effectively ordering that the status quo be maintained pending the determination of the substantive suit. The court held that telecom operators must not arbitrarily suspend or restrict access to services provided under valid agreements and licences, especially where due contractual and regulatory procedures have not been fully exhausted.
The legal challenge was filed by Nairtime Nigeria Limited and affiliated entities, who argued that the sudden restriction of access to telecom platforms such as USSD channels, SMS systems, short codes, and billing services amounted to unlawful interference with their operations. They maintained that they operate under valid licences issued by the Nigerian Communications Commission and that no proper notice of breach had been issued before the suspension.
The court, in its interim injunction, also emphasized that telecom operators are bound by contractual obligations and cannot unilaterally override agreed dispute resolution mechanisms simply to comply with regulatory directives. It further directed that access to critical telecommunications infrastructure used in delivering airtime and data credit services must remain uninterrupted while the case is ongoing.
The ruling has effectively thrown a lifeline to millions of Nigerians who had been cut off from emergency airtime and data borrowing services since mid-April, a disruption that sparked widespread frustration among subscribers who rely on the services for daily communication and business operations.
Industry observers note that the dispute highlights an ongoing regulatory tension between the FCCPC and telecom operators over who holds primary authority over digital credit services delivered through telecom infrastructure. While the FCCPC maintains that such services fall under consumer lending regulations, industry stakeholders argue that they should remain under the jurisdiction of the Nigerian Communications Commission, given their integration into telecom systems.
For now, the court’s decision signals a temporary relief for consumers and service providers alike, as attention shifts to the substantive hearing that will determine the long-term legal and regulatory status of airtime and data credit services in Nigeria’s telecom sector. Until then, operators are expected to comply with the injunction and restore services that have become essential to millions of subscribers across the country.
