MTN and Airtel made nearly N100 billion from voice and data lending in Q1 2026

Leading Nigerian telcos MTN and Airtel have both recorded a combined N98.22 billion in XtraTime revenue between January and March 2026.

The Xtratime service, which allows subscribers to borrow airtime or data, has always been a top product that allows telecom subscribers to pay back later at a 15% interest rate. 

The market is currently worth approximately N400 billion annually, making it one of the significant services offered by telcos. 

In addition, airtime and data credit play a crucial role in Nigeria’s informal financial ecosystem, especially for individuals, small traders, artisans, and low-income users who rely on short-term airtime advances as a substitute for formal credit access. 

The service is currently suspended by telcos, resulting from the need to adjust to the Federal Competition and Consumer Protection Commission’s (FCCPC) digital lending rules. Telcos have suffered significant financial losses from the halt. The telcos, however, maintain that the development is not expected to have a material effect on their earnings.

How MTN and Airtel made nearly N100 billion from XtraTime 

For the first three months of the year, both MTN and Airtel ran a full XtraTime service. In fact, MTN announced the suspension on April 16 while Airtel effected the temporary halt the following day. 

In the telcos’ financial statement, earnings from airtime and data lending are not always visible but yet form a part of their total revenue.

For Airtel, its XtraTime service is always factored into the category of “other revenues”, which comprises credit advances (XtraTime), value-added services, e-commerce, partnerships, USSD charges, SMS and others. 

Also, revenue from XtraTime service forms about 70% to 80% of the “other revenue”, considering its magnitude.

In Airtel’s earnings for Q1 2026, “other revenues” increased by 27.8% year-on-year in constant currency to $49 million. Taking an average of 75% gives Airtel a N50.42 billion ($36.8 million) revenue from XtraTime. 

In the case of MTN, digital lending revenue is included in its Fintech revenue, which is split into core and non-core fintech revenue. The latter then houses Value Added Services (VAS), where the XtraTime revenue is buried. 

Also, airtime and data lending have always been a dominant driver of total fintech revenue, contributing to about 80% of non-core revenue (VAS). 

According to MTN’s earnings for Q1 2026, Fintech recorded a 77.9% surge in revenue to N64.188 billion. According to MTN Nigeria MD, Karl Toriola, during the company’s earnings call on May 4, 2026, core fintech revenue only accounted for 6.8% of total reported fintech revenue. 

Now, 93.2% (N59.82 billion) of total Fintech revenue was contributed by non-core fintech, 80% of this revenue, attributed to XtraTime, amounts to N47.8 billion. 

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XtraTime: Telcos prepare for service restoration 

For weeks, Nigerian telcos have suspended the airtime and data lending services as they look to meet the new framework set by the FCCPC. 

While an order by the Federal High Court, Abuja Judicial Division, directed mobile network operators (MNOs) to restore XtraTime services, telcos seem to be using the period to onboard new vendors and allow customers to continue to pay off their outstanding balances.

For instance, MTN currently relies on Nairtime as a vendor, and plans are ongoing to onboard more following the recent FCCPC’s approval of five providers.