Tinubu moves to break Optasia dominance, opens up N3trn airtime credit market

President Bola Tinubu has reportedly directed the Federal Competition and Consumer Protection Commission (FCCPC) to dismantle the alleged 12-year monopoly held by South African technology firm Optasia in Nigeria’s airtime credit lending and data advance sector, in a sweeping reform expected to reshape a market valued at about N3 trillion annually.

The directive followed a detailed briefing presented by the FCCPC to the Presidency over the weekend, according to sources familiar with the development.

During the briefing, the Commission warned that Optasia’s long-standing dominance of the airtime advance and mobile credit ecosystem had contributed to significant capital flight from Nigeria, with profits running into trillions of naira reportedly repatriated annually while generating limited local economic value.

Sources said the Presidency was persuaded by the FCCPC’s argument that opening the sector to competition would strengthen Nigeria’s digital economy, expand job opportunities, promote indigenous innovation and align with the administration’s “Nigeria First” economic agenda.

Checks indicate that Optasia, formerly known as Channel VAS, has for more than a decade maintained a near-dominant position in airtime credit and data advance services, particularly across the MTN network and other affiliated operators on the continent.

The FCCPC reportedly expressed concern that despite its strong market presence, the company maintains limited physical and operational infrastructure in Nigeria.

Regulatory findings presented to the Presidency allegedly showed that Optasia has minimal administrative presence in the country, employs very few Nigerian staff, and does not integrate consumer credit data with local credit bureaus or domestic financial institutions.

READ ALSO: State Police constitutional amendment nears as Tinubu administration advances security reform agenda

Based on these concerns, the Commission argued that opening the market to new entrants would deepen Nigeria’s fintech ecosystem, encourage local participation, create employment and reduce the outflow of capital linked to the sector.

Expert sources, who spoke anonymously, alleged that the company has over the years relied on legal, lobbying and other pressure strategies to maintain its dominant position, a situation regulators believe has limited competition and constrained opportunities for indigenous technology firms.

Before the presidential directive, indications reportedly emerged that Optasia sought to influence regulatory outcomes, including efforts beyond the courtroom.

It was gathered that aside from securing an interim injunction against FCCPC actions, the company allegedly pursued high-level diplomatic interventions, including attempts to involve foreign leaders to persuade President Tinubu to maintain the status quo.

However, sources said the Presidency declined such pressure after reviewing the FCCPC’s economic justification for market liberalisation and increased competition.

The FCCPC maintains that dismantling the alleged monopoly and opening up the sector could transform a largely concentrated market into a competitive ecosystem capable of generating broader economic benefits.

If implemented, the reform is expected to unlock new investment opportunities, boost innovation in digital lending services, and significantly expand Nigeria’s fast-growing fintech and telecommunications-driven credit market.

Analysts note that the airtime and data advance segment has become an essential part of Nigeria’s digital financial system, serving millions of mobile subscribers who rely on short-term credit to stay connected.