MTN restores airtime and data borrowing service, slashes airtime borrowing limit

MTN Nigeria has restored its airtime and data borrowing service weeks after it was suspended due to a regulatory dispute involving the Federal Competition and Consumer Protection Commission (FCCPC).

Eligible subscribers can now access the service by dialling *303#, the same code previously used to borrow airtime and data.

However, the telecommunications company has reduced the maximum borrowing limit from N10,000 to N5,000.

Confirming the development, MTN said the service has resumed under revised conditions. "Please be informed that the service is back with the same code *303#. The maximum credit limit has been revised from NGN10,000 to NGN5,000," the company stated.

MTN also introduced a new repayment policy, requiring subscribers to clear all outstanding balances before they can access another airtime or data advance.

The borrowing service was suspended following a regulatory dispute between the FCCPC and the Nigerian Communications Commission (NCC) over the regulation of digital lending and value-added services offered by telecom operators.

The suspension was later lifted after the FCCPC halted enforcement of its Digital, Electronic, Online or Non-Traditional (DEON) Consumer Lending Regulations in compliance with a Federal High Court order.

Industry stakeholders welcomed the restoration of the service, describing airtime and data advances as an essential lifeline for millions of Nigerians who rely on them for communication, mobile banking, work and emergency situations.

According to the Association of Licensed Telecommunications Operators of Nigeria (ALTON), about 40 million Nigerians regularly use airtime and data borrowing services, while the industry is estimated to be worth between N300 billion and N400 billion annually.

The restoration follows similar moves by Airtel Nigeria and Globacom, which had earlier resumed their airtime and data lending services after the regulatory impasse eased.

Despite the return of the service, MTN subscribers will now have to adjust to the reduced borrowing limit and the stricter repayment conditions before qualifying for another credit advance.