Airtime Lending Turf War Rocks South African Fintech Quietly Dominant In Nigeria

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Airtime Lending Turf War Rocks South African Fintech Quietly Dominant In Nigeria

By
Staff Reporter
 |  September 25, 2026

A regulatory turf war between two Nigerian agencies briefly cut off airtime credit for an estimated 40 million mobile subscribers in April, exposing how a single South African fintech had quietly become critical infrastructure for Nigeria’s poorest phone users.

The Federal Competition and Consumer Protection Commission (FCCPC) extended its Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) regulations to cover airtime credit services in April 2026. The Nigerian Communications Commission (NCC), which licenses value-added service providers, was not consulted. Caught between the two regulators, MTN Nigeria, Airtel Nigeria, Globacom and 9mobile suspended their airtime lending products on April 15.

The Federal High Court in Abuja issued an interim injunction on April 24 restraining the operators from cutting off access to Nairtime Nigeria Limited, Optasia’s local subsidiary. Services were fully restored on June 24. But the financial damage was already done.

Nigeria accounted for approximately 14% of Optasia’s group revenue in its 2025 financial year. By the second quarter of 2026, that figure had fallen to under 4%. Optasia’s H1 2026 revenue still grew 58% to USD 185.3 M, driven by expansion in Ghana, Pakistan, Indonesia and Congo-Brazzaville. Chief Executive Salvador Anglada said the group had delivered growth “across all parameters” despite the Nigerian disruption.

The broader investment signal is harder to dismiss. Foreign capital inflows into Nigeria’s telecom sector fell to USD 7.24 M in the first quarter of 2026 from USD 80.78 M a year earlier, according to the National Bureau of Statistics. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) disputes the figure, noting operators invested NGN 2.13 T in capital expenditure in 2025 and plan NGN 1.86 T for 2026. But the timing of the regulatory clash coincides with the sharpest quarterly drop in recorded foreign telecom investment in recent years.

The Federal High Court in Lagos delivered a landmark judgment on July 20, ruling that the FCCPC can regulate competition and consumer protection in airtime lending but cannot issue telecommunications licences. That authority remains exclusively with the NCC. Justice Ambrose Lewis-Allagoa summarised the principle in a single line: “Concurrency means coexistence, not displacement”.

President Bola Tinubu had already moved before the judgment. In June, he directed the FCCPC to dismantle Optasia’s 12-year dominance and approved nine Nigerian fintechs to compete in a market estimated at NGN 3 T in annual transaction value. The FCCPC argued the exclusive arrangement facilitated capital flight while contributing minimally to local tax revenues or employment.

Optasia rejects the monopoly framing. Its Nigerian subsidiary, Nairtime Nigeria Limited, is “fully locally incorporated, locally staffed and locally led,” the company said. Anglada has called the suspension “a little bit aggressive”.

Meanwhile, the Wireless Application Service Providers Association of Nigeria has appealed the July 20 judgment, asking the Court of Appeal to suspend enforcement of the DEON regulations pending determination. ALTON has called for a formal coordination protocol between the FCCPC and the NCC. The NCC has yet to publicly stake out its position.

Airtime credit is not a niche product, offering a lifeline to millions of Nigerians who borrow a few hundred naira in airtime when their balance runs out. It is how traders, artisans and workers at the base of the economy stay connected when formal credit is unavailable. When the service goes dark, they feel it immediately.

In the same vein, when the regulatory environment goes dark, investors feel it for years. and it’s unlikely that Nigeria can afford another regulatory turf war in a sector it wants to lead globally.

Feature Image Credits: Cardtonic