MTN Nigeria's fintech segment returned to growth in the third quarter of 2026, buoyed by the phased restoration of its airtime and data lending services and clearer regulatory coordination following months of compliance-related disruption.

According to the operator's nine-month earnings report for the period ending September 2026, airtime and data lending services continue to recover, with third-quarter revenue up 78.5% compared with the second quarter. The quarter also offers the first extended look at how Nigeria's operator-embedded micro-credit market is settling into its new regulated shape after months in which the service sat idle.

The rebound follows a turbulent stretch that began in April, when the Federal Competition and Consumer Protection Commission (FCCPC) required all digital loans to comply with its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON) 2025. Under that framework, airtime and data lending were classified as consumer credit, prompting telecommunications operators to suspend the service pending clarifications and compliance.

Revenue trajectory underscores reliance on credit services

After the sharp second-quarter downturn caused by the regulatory suspension, MTN Nigeria's fintech unit rebounded to post ₦20.3 billion in revenue for Q3 2026, a 56.15% sequential increase over Q2 levels, as airtime lending services regain momentum.

The figures underline how central airtime and data credit advances are to the unit's value generation, with the XtraTime service serving as the overwhelming driver of MTN Nigeria's reported fintech revenue. That concentration is also why the terms under which the service now operates — an approved roster of lending partners and oversight spanning both consumer-protection and telecom regulators — carry weight for the unit's revenue profile going forward.

In the first quarter of 2026, the fintech division delivered ₦64.2 billion in revenue, supported by heavy engagement on the MoMo app and interest income generated from airtime and data lending. When MTN Nigeria temporarily halted the lending service to align with regulatory requirements, fintech revenue fell to ₦13.0 billion — a decline that highlighted the weight of the micro-credit offering within the business.

Following adjustments and a phased service restoration, airtime and data lending regained traction in the third quarter, with fintech revenue rising to ₦20.3 billion from ₦13.0 billion in Q2. The recovery points to strong customer demand for short-term credit advances to stay connected, demand that continues to convert into significant interest income for the operator.

"Overall fintech revenue declined 25.9% due to the suspension of the airtime and data credit service between April and June," the operator said in the financial report, adding that "the service resumed under a new multi-partner model and continued to recover in Q3, with revenue up 78.5% on Q2."

A vast lending market

The Nigerian airtime lending market is substantial. Recent reports indicate that more than 40 million Nigerians rely on airtime lending services, in a market valued between ₦300 billion and ₦400 billion. For the millions of users who lean on these advances to stay connected, the shift to a regulated, multi-partner framework determines how — and through whom — that access is now delivered.

Court rulings reshape oversight

The suspension stemmed from a regulatory tussle over jurisdiction. While the FCCPC treated airtime and data credit advances as digital loans subject to consumer protection rules, telecom operators and industry groups such as the Association of Licensed Telecommunications Operators of Nigeria (ALTON) argued that airtime lending is a core telecom service falling under the Nigerian Communications Commission (NCC).

In April 2026, the Federal High Court in Lagos issued an ex parte order (Suit No. FHC/L/CS/760/2026) following a challenge by WASPAN, prompting the FCCPC to suspend enforcement of the DEON Regulations.

On July 20, 2026, the court dismissed the WASPAN suit, affirmed that the DEON Regulations are intra vires — within the powers — of the FCCPC, and discharged the interim restraining order. The court, however, noted that the FCCPC's powers operate alongside the NCC's licensing authority, a framing that points to regulatory coordination rather than conflict. How that coordination translates into day-to-day oversight of the market's growing roster of approved lenders is a detail worth tracking as the framework matures.

Shift to a multi-partner credit model

In June, a month before the court ruling, Optasia announced the restoration of airtime credit services in Nigeria. Optasia, which operates in the country through Nairtime, sits behind Nigeria's major mobile operators as the credit engine powering airtime and data loans.

The FCCPC's actions have driven a significant structural change, moving the Nigerian airtime and data lending market away from a traditional single-operator value-added service toward a regulated, multi-faceted digital consumer credit model.

The commission approved a list of companies to offer compliant airtime and data credit services, including Total TIM Nigeria Limited, Rane Interactive Medien CLS Limited, Mode NG Applications Nigeria Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited. With Q3 marking the first quarter of recovery under the resumed multi-partner model, the pace of the lending rebound into the fourth quarter and full-year results stands out as the immediate item to watch.