₦airaland Forum

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, authoritative sources have told Vanguard.

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.

According to multiple sources within the commission, the President was persuaded by arguments that Optasia’s exclusive arrangement has for over a decade facilitated substantial capital flight while contributing minimally to local tax revenues or employment.

“The Commission’s argument is that deregulating the sector will promote competition, the Nigeria First Technology Policy, employment for Nigerians and discourage capital flight to South Africa as hitherto perpetrated by Optasia,” an FCCPC official familiar with the briefing told this newspaper on condition of anonymity because he was not authorised to speak publicly.

The directive, which sources say 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.

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.


Allegations of non-compliance

It is alleged that Optasia—formerly known as Channel VAS—has operated for 12 years without establishing any administrative infrastructure in Nigeria. Sources further alleged that 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.

Attempts to reach Optasia for comment on these allegations were unsuccessful as of press time. The company’s legal representatives in Nigeria did not respond to multiple inquiries. However, it is understood that Optasia has already filed an interim injunction before a Federal High Court seeking to restrain the FCCPC from implementing any deregulation measures.

The allegations, if proven, could have significant regulatory implications. Under Nigerian law, foreign companies providing digital financial services to Nigerian consumers are generally expected to maintain a local presence, comply with data localisation 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 FCCPC’s acting executive vice chairman, Adamu Abdullahi, has previously spoken publicly about the need to dismantle anti-competitive arrangements in digital lending.

In a recent industry forum, Abdullahi warned that “no single company, regardless of origin, will be allowed to hold an entire digital subsector hostage through exclusive contracts that do not serve Nigerian consumers.”

Industry analysts say the timing of the directive is significant, coming as Nigeria grapples with foreign exchange shortages and seeks to maximise local value from its digital economy.

The airtime credit lending market, estimated at N3 trillion in annual transaction value, represents a substantial pool of consumer spending that policymakers believe should benefit domestic firms.

A senior fintech executive who requested anonymity because his company is among those seeking to enter the market described the President’s decision as “a watershed moment.” He added: “For 12 years, one foreign firm has extracted value from Nigerian consumers with almost no local reinvestment. That model is now ending.”

The FCCPC is expected to publish implementation guidelines within 60 days, detailing how the monopoly will be unwound and what conditions new entrants must meet.

The nine companies which are expected to be onboarded are: Technotrends 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.

Pierocash:
Why breaking it up, simply withdraw the license from them and deregulate it amongst other fintech companies in Nigeria.

Islie:
Tinubu orders breakup of Optasia’s 12-year monopoly on airtime credit lending


…FCCPC secures presidential backing to dismantle exclusive control over N3trn airtime advance market

…Capital flight and lack of local investment, cited among other reasons

....Nine Nigerian fintechs to be onboarded





https://www.vanguardngr.com/2026/06/tinubu-orders-breakup-of-optasias-12-year-monopoly-on-airtime-credit-lending/#google_vignette

Nlfpmod

peleson1:
But you didn't read the article

That is exactly what the government has done

AMINDA:
This is the matter that David Hundeyin has said he will be writing an exposé on. This people want to have their hands in all financial cookie jar possible while paying the least attention to actually serving Nigerians. The level of greed and self-aggrandisement is becoming nauseating.

Image123:
This one no go school abi wetin?

tishbite41:
Chase all South Africans away

Pierocash:
that is not what the government has done. The government is breaking up that sector and deregulate it, they are still operating. Withdrawing license simply means they are been withdrawn from being part of the business

iwaeda:
They will soon collapse MTN. Their greed insatiable.

AMINDA:
This is the matter that David Hundeyin has said he will be writing an exposé on. This people want to have their hands in all financial cookie jar possible while paying the least attention to actually serving Nigerians. The level of greed and self-aggrandisement is becoming nauseating.

peleson1:
After going through , I noticed these companies are new and owners not listed .
Mostly fronts for those politicians in power

Looking at the item logically, the South Africa owners have lost huge investments in Nigeria.

This alone is larger than All the African brothers and sisters the xenophobic South Africans are chasing including their businesses .

Imagine loosing 3 trillion naira X 12 that is growing exponentially.

This alone is $25,174,825,174.82517483

All the African immigrants the xenophobic South Africans are attacking may not worth this singular company revenue from a single business from Nigeria.

So when all African countries targets every SA company operating in their countries, in a long run , SA economy may not be sustainable again and their xenophobic citizens will start scanveging other countries for opportunities

This is just 12 years returns

You can see how greedy they are .

Making this type of money and exporting this kind of funds from Nigeria year in year out without ever employing a Nigerian or carrying out any corporate social responsibilities to the Nigerian people

oyoofong:
Chai! So this borrowing wey we be dey use dey was a big time business? Wow!

AMINDA:
You've been fooled by the article as intended. Look beyond the headlines.