FG Ends Optasia’s Exclusive Hold on Airtime Credit Lending

 

Airtime credit lending allows mobile phone users to borrow small amounts of airtime or data when their balance runs out, repaying typically within days—a service used by tens of millions of low-income Nigerians.
It is alleged that Optasia has operated for 12 years without establishing any administrative infrastructure in Nigeria. The company employs no Nigerian staff and does not share credit data with Nigerian bureaus or other financial technology firms, creating an information asymmetry that has stifled local competition.

President Bola Tinubu has directed the Federal Competition and Consumer Protection Commission (FCCPC) to break the 12-year monopoly of South African firm Optasia on airtime credit lending and data advance services in Nigeria,

The decision, which followed a high-level briefing by the FCCPC, marks a major policy shift aimed at opening up an estimated N3 trillion annual market to Nigerian fintechs.

The directive, was issued in writing late last month, effectively orders the FCCPC to use its statutory powers under the Federal Competition and Consumer Protection Act to end exclusivity arrangements that have kept smaller players out of the airtime credit lending space.

The allegations, if proven, could have significant regulatory implications under Nigeria law, foreign companies providing digital financial services to Nigerian consumers are generally expected to maintain a local presence, comply with data localization requirements, and contribute to the national tax base. 

The FCCPC’s case, as presented to the Presidency, reportedly hinges on the alleged claim that Optasia has circumvented these expectations.

The nine companies which are expected to be on boarded are Techno trends Platforms Nigeria Limited, Total Tim Nigeria Limited, Fonyou Technologies Nigeria Limited, Rane Interactive Medien CLS Limited, MRS Innovation Nigeria Limited, Mode NG Applications Nigeria Limited, ERL Telecoms Service Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited.

Among the requirements being considered are mandatory local data hosting, minimum Nigerian equity participation, and transparent credit data sharing with the Nigerian Credit Bureau.