Tinubu’s competition shake-up ends foreign firm’s 12-year control of airtime lending

The decision follows a detailed briefing by the FCCPC, which reportedly warned the Presidency that Optasia’s long-standing dominance of the market had encouraged massive capital flight

President Bola Tinubu has directed the Federal Competition and Consumer Protection Commission (FCCPC) to dismantle the 12-year monopoly allegedly enjoyed by South African technology firm Optasia in Nigeria’s airtime credit lending and data advance market, in a move expected to unlock a sector estimated to be worth over N3 trillion annually.

The decision follows a detailed briefing by the FCCPC, which reportedly warned the Presidency that Optasia’s long-standing dominance of the market had encouraged massive capital flight, with profits running into trillions of naira being transferred out of Nigeria every year while generating limited economic value locally.

Sources familiar with the matter said that the Presidency was persuaded by the Commission’s position that opening the sector to competition would strengthen Nigeria’s digital economy, create jobs, promote local innovation and align with the administration’s Nigeria First economic agenda.

Monopoly Under Scrutiny

For more than a decade, Optasia, formerly known as Channel VAS, has maintained a near-exclusive grip on airtime credit and data advance services, particularly on the MTN network and several of its African affiliates.

Regulators are said to be concerned that despite dominating the market for years, the company maintains little operational footprint in Nigeria.

According to sources, Optasia has no significant administrative infrastructure in the country, employs virtually no Nigerian staff and does not share consumer credit data with local credit bureaus or Nigerian financial institutions.

The FCCPC has reportedly argued that opening the market to competition will promote local participation, strengthen Nigeria’s fintech ecosystem, create employment opportunities and stem the continuous outflow of capital from the country.

Sources further alleged that the company has used a combination of legal actions, lobbying efforts and pressure tactics over the years to preserve its dominant position in the market, a situation regulators believe has stifled competition and limited opportunities for indigenous technology firms.

Tinubu Rejects Diplomatic Pressure

Sources disclosed that efforts by Optasia to preserve its dominant position extended beyond the courtroom.

Apart from securing an interim court injunction against the FCCPC’s actions, the company reportedly pursued high-level diplomatic interventions, including attempts to enlist the support of a foreign President to persuade President Tinubu to maintain the status quo.

However, the Presidency was said to have rejected the pressure after reviewing FCCPC’s economic case for deregulation and competition.

Officials reportedly concluded that Nigerian technology firms possess the expertise, capacity and infrastructure required to provide the same services while ensuring that profits, jobs and investments remain within the country.

Market Set for Liberalisation

As part of the planned reforms, the FCCPC has recommended the entry of multiple licensed Nigerian fintech and technology companies into the airtime credit lending and data advance space, ending what has effectively been a single-player market for over a decade.

Industry sources say increased competition is expected to drive innovation, improve consumer choice, deepen financial inclusion and retain billions of naira within the Nigerian economy.

The move is being viewed as one of the most significant competition-driven interventions under the Tinubu administration and signals a broader push to strengthen indigenous participation in the technology and fintech sectors while reducing dependence on foreign-controlled platforms.

Officials believe the reform will transform a market long dominated by a single foreign operator into a competitive ecosystem capable of generating greater prosperity for Nigerian businesses, consumers and the wider economy.