- Tinubu Approves Push to Liberalise Nigeria’s ₦3tn Airtime Lending Industry
- The commission argued that opening the market to more operators would stimulate local innovation
- The proposed reforms are expected to transform the airtime credit and data advance market
President Bola Tinubu has directed the Federal Competition and Consumer Protection Commission to take steps aimed at ending the alleged 12-year dominance of South African technology firm Optasia in Nigeria’s airtime credit lending and data advance market.
Eko Hot Blog reports that the move is expected to open up a sector estimated to generate about ₦3 trillion annually, creating opportunities for increased competition and greater participation by indigenous technology and financial service providers.
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According to sources familiar with the development, the directive followed a detailed presentation by the FCCPC to the Presidency, during which the commission reportedly raised concerns over the company’s long-standing control of the market and the alleged outflow of significant profits from Nigeria.
The commission reportedly argued that opening the market to more operators would stimulate local innovation, create jobs, strengthen the country’s fintech ecosystem and support the Federal Government’s economic diversification agenda.
Investigations indicate that Optasia, formerly known as Channel VAS, has maintained a dominant position in Nigeria’s airtime credit and data advance services for more than a decade, particularly through partnerships with telecom operators, including MTN Nigeria
Regulators are said to be concerned that despite its extensive market presence, the company has a limited operational footprint in Nigeria, with claims that it employs few local staff and maintains minimal administrative infrastructure within the country.
The FCCPC has also reportedly expressed concerns over the company’s consumer credit reporting practices, arguing that broader market participation would strengthen local financial institutions and improve the overall digital lending ecosystem.
Sources further alleged that the company had relied on legal actions and lobbying efforts over the years to maintain its market position, a situation regulators believe may have restricted competition and reduced opportunities for local technology firms.
Reports indicate that before the latest directive, Optasia obtained an interim court injunction challenging some regulatory actions by the FCCPC. The company was also said to have explored diplomatic channels in an effort to preserve the existing market structure.
However, following a review of the FCCPC’s submissions, the Presidency reportedly concluded that greater competition would better serve Nigeria’s economic interests by promoting local enterprise, reducing capital flight and expanding opportunities within the digital economy.
The proposed reforms are expected to transform the airtime credit and data advance market from one largely dominated by a single operator into a more competitive environment that could benefit consumers, fintech companies and the wider economy.
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