Tinubu backs FCCPC move to end Optasia’s 12-year monopoly on airtime lending market
By Aboki Forex —
President Bola Tinubu has approved a major shake-up of Nigeria’s airtime credit and data advance market. The Federal Competition and Consumer Protection Commission (FCCPC) has licensed nine companies to operate in the sector.
The move ends what regulators call a 12-year monopoly allegedly controlled by South African firm Optasia, formerly Channel VAS. Officials say the reform could unlock a market worth over N3 trillion annually.
Capital flight concerns
The FCCPC briefed the Presidency on concerns that Optasia’s dominance encouraged massive capital flight. Trillions of naira in profits were reportedly moved out of Nigeria over the years.
Regulators argued that opening the sector would deepen competition, create jobs, and support Tinubu’s Nigeria First economic policy. Presidency officials were convinced that Nigerian fintech firms have the technology and expertise to compete effectively.
Nine firms licensed
The FCCPC approved nine firms to operate in the market, ending what many observers considered a near single-player system. For over a decade, Optasia dominated airtime credit and data advance services, especially on the MTN network.
Regulators say the company has a limited operational presence in Nigeria. Sources claim it employs few Nigerian workers and does not share consumer credit data with local financial institutions or credit bureaus.
Legal and diplomatic pressure
Officials alleged that Optasia relied on legal battles, lobbying, and pressure tactics to maintain its position. The company secured an interim court injunction against some FCCPC actions. It also pursued diplomatic channels, including seeking support from a foreign President.
The Presidency reportedly rejected the pressure after reviewing the economic implications. Government officials concluded that liberalising the market would retain investments and ensure profits benefit local businesses and workers.
Impact on financial inclusion
Industry stakeholders say increased competition will drive innovation and expand consumer choice. The reforms are expected to deepen financial inclusion by allowing more technology companies to provide digital credit solutions to millions of Nigerians.
Analysts describe the intervention as one of the most significant competition-focused reforms under the Tinubu administration. It is a major push to strengthen indigenous participation in Nigeria’s digital economy.