MTN slashes airtime borrowing limit to N5,000 as advance service returns

MTN Nigeria has restored its airtime and data borrowing service after weeks of disruption, but subscribers will now find their borrowing capacity cut in half. The telecom operator slashed the maximum credit limit from N10,000 to N5,000 as part of revised conditions for the service.

The service is active again through the same code subscribers have always used: *303#. MTN confirmed in an exclusive message to Legit.ng that the service is back, but with tighter terms.

New borrowing conditions

MTN said: "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."

Beyond the lower ceiling, MTN has introduced a strict repayment condition. Subscribers must clear all outstanding balances before they can access a new airtime or data advance. MTN noted: "All outstanding balances must be cleared before accessing a new one."

This means customers who previously qualified for the full N10,000 credit will now find their borrowing capacity reduced by half. Eligible subscribers can dial *303# to access advances, but only if they have no existing debt.

Why the service was suspended

The weeks-long disruption was tied to a regulatory standoff between the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC). The two agencies clashed over authority to regulate digital lending and value-added services offered by telecom operators.

The suspension drew sharp criticism from industry groups. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) estimated that the dispute put at risk an industry valued at between N300 billion and N400 billion annually. ALTON also raised concerns about investor confidence and regulatory certainty.

The Wireless Application Service Providers Association of Nigeria (WASPAN) described the borrowing service as an essential financial lifeline for subscribers who have limited or no access to traditional credit facilities. Millions of Nigerians, particularly low-income earners, traders, artisans and small business owners, rely on airtime and data advances to stay connected for work, mobile banking and emergencies.

Market context

MTN is the largest telecommunication network in Nigeria with over 96 million subscribers, which is about 51.33% of the total mobile subscriber base in Nigeria.

Earlier, Airtel and Globacom restored their lending services following the suspension of controversial regulations by the FCCPC. Subscribers can now regain access to products such as Globacom's popular "Borrow Me Credit" service and other airtime advance options.

WASPAN confirmed telecoms' reinstatement of services amid ongoing regulatory challenges.

For Nigerian consumers, the lower borrowing limit means less buffer for emergencies. Subscribers who depended on the full N10,000 advance for business calls or data bundles will now have to adjust to tighter credit conditions, even as the cost of living continues to pressure household budgets.