Nigeria’s two biggest telecom operators, MTN and Airtel, generated an estimated N98.22 billion from airtime and data lending services in the first quarter of 2026, highlighting how important digital credit services have become to the country’s telecom industry.
The earnings came from the companies’ popular airtime advance platforms, widely known as XtraTime services, which allow subscribers to borrow airtime or data and repay later with additional charges attached. The services have become deeply integrated into Nigeria’s digital economy, especially among low-income earners, traders, artisans, and users who depend on quick short-term credit for communication and internet access.
Industry estimates currently place the airtime and data lending market at roughly N400 billion annually, making it one of the most profitable value-added telecom services in the country.
Telcos Benefited From Full Q1 Operations
Both MTN and Airtel operated their airtime lending services throughout the first quarter before temporarily suspending them in April following new regulatory requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC).
MTN announced the suspension of its service on April 16, while Airtel followed shortly after on April 17. Despite the pause, the strong Q1 performance showed just how much revenue the platforms contribute to telecom earnings.
Although telecom operators do not separately disclose XtraTime revenue in their financial statements, analysts can estimate the figures based on how the companies categorize their earnings.
Airtel’s XtraTime Revenue Crosses N50 Billion
For Airtel, revenue from airtime and data advances is grouped under its “other revenues” segment. This category also includes value-added services, USSD charges, partnerships, e-commerce income, SMS services, and other digital offerings.
Historically, XtraTime contributes between 70% and 80% of this segment’s total revenue due to its widespread usage among subscribers.
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According to Airtel’s Q1 2026 earnings report, the company’s “other revenues” rose by 27.8% year-on-year in constant currency to $49 million. Based on industry estimates and contribution ratios, approximately 75% of that amount is believed to have come from XtraTime services.
This places Airtel’s estimated earnings from airtime and data lending at around N50.42 billion, equivalent to roughly $36.8 million.
MTN’s Lending Revenue Hidden Inside Fintech Earnings
MTN records its airtime and data lending income differently. The company includes digital lending within its fintech business, specifically under non-core fintech revenue tied to value-added services (VAS).
Airtime and data borrowing have remained one of the biggest contributors to MTN’s fintech growth over the years.
In its Q1 2026 results, MTN reported a 77.9% increase in fintech revenue, which climbed to N64.188 billion.
During the company’s earnings call on May 4, 2026, MTN Nigeria CEO Karl Toriola revealed that core fintech activities contributed only 6.8% of total fintech revenue.
This means that about 93.2% of the fintech earnings, approximately N59.82 billion, came from non-core services. Since airtime and data lending are estimated to account for around 80% of that category, MTN’s XtraTime revenue for the quarter is estimated at roughly N47.8 billion.
FCCPC Rules Trigger Temporary Suspension
The temporary suspension of airtime and data lending services across telecom networks came after the FCCPC introduced a new regulatory framework for digital lending operations.
The regulations are designed to strengthen consumer protection and improve oversight within Nigeria’s growing digital credit market.
Although the suspension disrupted operations and resulted in revenue losses for telecom operators, the companies have stated that the impact is not expected to significantly affect their long-term earnings performance.
A Federal High Court in Abuja also reportedly directed mobile network operators to restore the services, but telcos appear to be using the transition period to comply fully with the updated regulations, onboard new lending partners, and allow subscribers to clear existing debts.
MTN Plans Vendor Expansion
MTN currently works with Nairtime as one of its lending vendors and is reportedly preparing to onboard additional providers after the FCCPC approved five new digital lending operators for the telecom sector.
Industry observers believe the return of XtraTime services could further accelerate fintech adoption among telecom users while also expanding access to informal digital credit across Nigeria.
What do you think about airtime and data borrowing services in Nigeria? Do you use XtraTime often, or should telcos reduce the extra charges? Share your thoughts in the comments and follow us for more tech and telecom updates.
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