Tinubu orders FCCPC to break monopoly in airtime and data lending sector

President Bola Ahmed Tinubu has reportedly directed the Federal Competition and Consumer Protection Commission (FCCPC) to dismantle the alleged 12-year monopoly enjoyed by South African technology firm Optasia in Nigeria’s airtime credit and data advance market.

The directive, if implemented, is expected to open up a sector estimated at about ₦3 trillion annually, allowing wider competition and increased participation by local operators.

According to sources familiar with the development, the decision followed a detailed briefing by the FCCPC, which raised concerns over what it described as the company’s long-standing dominance of Nigeria’s airtime lending ecosystem. The Commission reportedly warned that the arrangement had contributed to significant capital flight, with profits running into trillions of naira repatriated annually, while generating limited local economic value.

Checks indicate that Optasia, formerly known as Channel VAS, has maintained a strong presence in airtime credit and data advance services in Nigeria for over a decade, particularly through partnerships with major telecom operators, including MTN. The FCCPC is said to have expressed concern that despite this dominance, the firm has limited operational presence in Nigeria, with minimal local staffing and no significant integration with domestic credit reporting systems.

Regulatory sources argue that this structure has weakened the development of Nigeria’s fintech ecosystem and limited opportunities for indigenous technology firms. The planned reform is aimed at opening the market to competition, encouraging local innovation, creating jobs, and aligning with the Federal Government’s “Nigeria First” economic agenda.

However, the move is not without controversy. Sources claim Optasia has previously sought legal and diplomatic intervention to protect its market position, including securing interim court orders against regulatory action. There are also allegations that the company engaged in lobbying efforts at different levels to influence policy decisions in its favour, claims which remain unverified.

Despite reported pressure, the presidency is said to have aligned with the FCCPC’s position that liberalising the sector would deliver broader economic benefits, strengthen competition, and reduce capital outflows. If fully implemented, the policy shift could significantly reshape Nigeria’s airtime credit and digital lending space, opening it up to multiple players and boosting fintech participation.

The FCCPC maintains that the ultimate goal is to transform a long-dominated market into a more competitive ecosystem capable of delivering greater value to consumers and the wider Nigerian economy.

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