Tinubu Takes Steps to End Foreign Firm's Long Hold on Airtime Lending

President Bola Tinubu has told the Federal Competition and Consumer Protection Commission (FCCPC) to break the 12-year hold that South African firm Optasia has on airtime credit lending and data advance in Nigeria. This change could open up a market worth over N3 trillion each year.

This move came after the FCCPC gave a detailed report. They warned that Optasia’s long control of the market has led to a lot of money leaving Nigeria. Each year, profits that are worth trillions of naira are sent out of the country, while not creating much value locally.

Sources close to the situation said that the Presidency agreed with FCCPC’s view. They believe that allowing competition in this sector will boost Nigeria’s digital economy, create jobs, and support local innovation. This aligns with the administration's Nigeria First economic plan.

Focus on the Monopoly

For over ten years, Optasia, which used to be called Channel VAS, has held a near monopoly on airtime credit and data advance services. This is especially true on the MTN network and its African partners.

Regulators are worried that even with this market control, the company does not have much of a presence in Nigeria. Sources say that Optasia has no significant office in the country, employs almost no Nigerians, and does not share consumer credit data with local credit bureaus or Nigerian banks.

The FCCPC believes that opening the market will allow more local players to join in, strengthen Nigeria’s fintech sector, create job opportunities, and stop money from continuously leaving the country.

Tinubu Stands Firm Against Pressure

Sources revealed that Optasia attempted to hold onto its dominant position in ways that went beyond the courts. They secured an interim court order against the FCCPC's actions and even tried to get diplomatic help. They sought support from a foreign President to convince President Tinubu to keep things as they were.

However, the Presidency reportedly turned down this pressure after looking closely at the FCCPC’s arguments for deregulation and competition. Officials concluded that Nigerian tech companies have the skills, capacity, and infrastructure to provide the same services. They believe this will keep profits, jobs, and investments in Nigeria.

Market Ready for Change

As part of the planned changes, the FCCPC has suggested that many licensed Nigerian fintech firms should be allowed to enter the airtime credit lending and data advance market. This will end what has essentially been a single-player market for more than ten years.

Industry insiders say that more competition will likely encourage innovation, improve choices for consumers, and strengthen financial inclusion. It could also keep billions of naira in the Nigerian economy.

This move is seen as one of the most important steps towards competition under Tinubu's government. It shows a broader aim to boost local participation in tech and fintech, while reducing reliance on foreign companies. Officials believe this reform will change a market long held by one foreign company into a competitive space that can create more wealth for Nigerian businesses, consumers, and the economy at large.