President Bola Ahmed Tinubu has directed the Federal Competition and Consumer Protection Commission (FCCPC) to break the long-standing monopoly allegedly enjoyed by South African technology firm Optasia in Nigeria’s airtime credit lending and data advance services, in a bold move to promote local participation, curb capital flight, and unlock massive economic opportunities.
The directive, which follows a detailed briefing by the FCCPC, targets Optasia’s 12-year dominance in the sector. The company, formerly known as Channel VAS, has maintained near-exclusive arrangements, particularly with major telecom operators like MTN. This has reportedly led to significant profit repatriation with limited local investment and innovation.
Opening the market is expected to create fair competition, empower Nigerian fintech companies, generate employment, and unlock an estimated N3 trillion in annual revenue for the domestic economy. As part of the reforms, the FCCPC has already approved nine local firms to operate in the airtime and data lending space.
“This intervention aligns with the administration’s commitment to fostering a competitive business environment, supporting indigenous enterprises, and ensuring that critical digital financial services deliver maximum value to Nigerians,” a Presidency source noted.
The move is anticipated to result in more affordable services for consumers, greater innovation in digital lending products, and retention of economic value within Nigeria’s borders.