Tinubu Directs FCCPC to End South African Firm’s Monopoly in Airtime, Data Lending Market

President Bola Tinubu has 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 and data advance market.

The directive is expected to open up a sector that could generate an estimated ₦3 trillion annually, according to regulatory projections.

The decision reportedly follows a detailed briefing presented to the presidency by the FCCPC, which raised concerns that Optasia’s long-standing dominance has contributed to significant capital flight, with profits repatriated abroad while generating limited local economic value.

Officials familiar with the development said the presidency was persuaded that introducing competition into the airtime lending and data advance ecosystem would strengthen Nigeria’s digital economy, support job creation, encourage local innovation, and align with the administration’s “Nigeria First” economic policy.

Optasia, formerly known as Channel VAS, has operated for years as a dominant provider of airtime credit and data advance services, particularly through partnerships with major telecom operators such as MTN and other networks across Africa.

Regulatory concerns also include the firm’s limited physical presence in Nigeria. The FCCPC reportedly argued that the company maintains minimal operational infrastructure in the country and has limited engagement with local credit reporting systems or domestic financial institutions.

The Commission believes that opening the market will allow indigenous fintech companies and other operators to participate more actively, thereby expanding employment opportunities and strengthening Nigeria’s technology and financial services ecosystem.

Industry sources also alleged that the company had previously relied on legal challenges and lobbying efforts to protect its market position, although these claims have not been independently verified.

There were also reports of attempts to seek diplomatic intervention to influence regulatory actions, but the presidency was said to have declined such pressure after reviewing the FCCPC’s findings.

The planned reform marks a significant shift in Nigeria’s telecom-linked financial services sector, which has largely been controlled by a single foreign operator for over a decade.

If fully implemented, the policy is expected to reshape airtime credit and data lending services in Nigeria by encouraging competition, increasing transparency, and reducing profit repatriation.