Nigerians can now borrow airtime and data from five new providers approved by the Federal Competition and Consumer Protection Commission (FCCPC), following the pause of such services by MTN and Airtel. The change comes after the FCCPC reclassified airtime and data borrowing as formal loan services, requiring licensed providers to operate under regulated conditions.
Five New Providers Approved
The FCCPC has licensed the following companies to offer airtime and data credit services:
- Total TIM Nigeria Limited
- Rane Interactive Medien CLS Limited
- Mode NG Applications Nigeria Limited
- Cloud Interactive Associate Limited
- Coverage Broadband Limited
These companies are tech and fintech-style service providers, not traditional telecom networks. They are expected to deliver credit through mobile apps, digital platforms, and fintech lending systems, rather than the previous USSD-based borrowing.
How the New System Works
The borrowing process is now more formal. Users will likely need to use an official app or website to request credit. Eligibility will be based on recharge history and usage patterns, and new users may start with smaller limits. Repayment can be done through the next airtime recharge, in-app payment, or auto-deduction, depending on the provider.
Benefits for Nigerians
Borrowers can expect clearer repayment terms, regulated and transparent fees, increased competition, and better consumer protection under FCCPC rules.
Potential Drawbacks
The onboarding process may be longer, and not every user will immediately qualify for credit.
Will MTN and Airtel Resume Services?
Yes, but not immediately. MTN and Airtel are expected to resume airtime and data lending once they fully comply with FCCPC requirements. Their services will likely be more regulated and transparent when they return.
The question remains: will these new providers make borrowing faster and easier than the old system? Only time will tell.
