Access, Zenith, Other Banks Release USSD Codes to Borrow Airtime, Data After Telcos Suspend Service

• Nigerian banks are disrupting the airtime credit market, offering lower rates and easier loans
• GTBank leads with a 2.95% interest rate on instant airtime loans via USSD
• Regulatory changes have shifted power from telecom operators to banks, enhancing consumer protection

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nigerian banks are making a strong entry into a market once dominated by telecom operators, taking over the fast-growing airtime and data credit business with cheaper rates, easier repayment plans, and stronger consumer protection.

For years, millions of Nigerians relied on services like MTN XtraTime and Airtel Extra Credit to stay connected during emergencies. But recent regulatory changes and service suspensions by major telecom operators have created a major opening for banks to step in.

Now, financial institutions, including GTBank, Access Bank, UBA, Zenith Bank, FirstBank, and FCMB, are using their USSD platforms to provide instant airtime and data loans directly to customers.

The shift is reshaping Nigeria’s estimated N400 billion airtime and data credit market.

GTBank leads with lower interest rates

At the centre of the disruption is Guaranty Trust Bank (GTBank), which launched its Quick Airtime Loan at just 2.95% interest, significantly lower than the 15% or more often charged by telecom operators such as MTN Nigeria and Airtel Nigeria.

Eligible customers can borrow between N100 and N10,000 instantly by dialling 73790#. The service works across major mobile networks and runs on GTBank’s popular *737# USSD platform, making it accessible even for users with basic phones and no internet connection.

Repayment is automatically deducted from the customer’s next account inflow, usually within seven days, while early repayment attracts no penalty.

GTBank says the initiative combines its lending strength with the digital infrastructure of HabariPay to improve customer access to quick financial solutions.

For traders, students, artisans, and small business owners, this provides a cheaper and faster way to stay connected for business, education, and emergencies.

Why telcos are losing their grip

For years, telecom companies controlled the airtime credit market through services like XtraTime and Extra Credit.

However, the introduction of the Federal Competition and Consumer Protection Commission (FCCPC)’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 changed the landscape.

The new rules classified airtime and data advances as formal lending, forcing providers to meet stricter licensing requirements, stronger consumer protection standards, and full regulatory compliance.

By April 2026, major operators, including MTN and Airtel, suspended several of their borrowing services following regulatory pressure, leaving many subscribers stranded and opening the door for banks.

Although some telecom operators later secured temporary legal relief, banks had already begun expanding aggressively into the space.

FirstBank, FCMB, others join the battle

GTBank is not alone.

First Bank of Nigeria has strengthened its airtime credit service through its *894# USSD banking platform, allowing customers to borrow quickly when funds are low.

First City Monument Bank (FCMB) also offers Airtime Advance via 32911#, giving customers instant access to call credit without needing a smartphone or internet access.

Other major lenders such as Access Bank, United Bank for Africa (UBA), and Zenith Bank are also expanding their USSD offerings as competition intensifies.

Because these services are linked directly to customers’ bank accounts, eligibility is often based on account activity and financial behaviour rather than mobile usage history alone.

Bigger economic benefits for Nigerians

The impact goes beyond convenience.

Lower borrowing costs mean Nigerians spend less on emergency airtime and data credit, leaving more money for food, transport, school fees, and small business operations.

It also supports financial inclusion by encouraging regular account usage, savings habits, and formal credit history building.

Banks benefit from stronger oversight by the Central Bank of Nigeria, better risk management through account analysis, and easier loan recovery through automatic deductions.

However, not everyone can access these services.

Many banks require active accounts with regular monthly inflows, often around N10,000, which may exclude rural dwellers and informal workers without stable banking relationships.

The end of telcos’ monopoly?

This growing bank takeover signals the decline of telecom operators’ long-standing monopoly over small digital loans.

For telcos, losing airtime lending means losing a major source of revenue and an important customer retention tool, according to a BusinessDay report.

It could also force stronger partnerships between banks and telecom firms or accelerate licensed digital lending collaborations.

What began as stricter consumer lending regulation has now triggered one of the biggest competitive shifts in Nigeria’s digital economy.

As more banks enter the market, borrowing rates are expected to fall further, product options will improve, and customers will gain more control.

For millions of Nigerians trying to stay connected without paying excessive fees, the era of expensive telco airtime loans may finally be coming to an end.

List of companies approved to lend airtime, data

Legit.ng earlier reported that the federal government, through the Federal Competition and Consumer Protection Commission (FCCPC), has published a list of approved companies licensed to provide airtime and data lending services in Nigeria.

The disclosure, issued under the registration framework for digital money lenders, includes firms cleared to operate airtime and data advance services through mobile applications.

The move is aimed at strengthening consumer protection, improving transparency, and ensuring compliance with new lending regulations.

Source: Legit.ng