The move is expected to open up a sector estimated to be worth more than N3 trillion annually and create opportunities for increased participation by Nigerian fintech and technology firms.
According to sources familiar with developments, the directive came after the FCCPC presented a comprehensive briefing to the Presidency outlining concerns over Optasia’s long-standing dominance of the airtime credit and data advance market. The Commission reportedly argued that the market structure had encouraged substantial capital flight, with significant profits generated in Nigeria being transferred abroad while creating limited economic benefits within the country.
Sources said the Presidency accepted the Commission’s position that introducing competition into the sector would support the Tinubu administration’s economic priorities by stimulating innovation, creating jobs, strengthening local enterprises and retaining more value within the Nigerian economy.
Concerns Over Long-Term Market Dominance
For more than a decade, Optasia, formerly known as Channel VAS, has maintained a dominant presence in airtime credit and data advance services, particularly through the MTN network and several affiliated telecommunications operations across Africa.
Regulatory sources expressed concern that despite its extensive market presence, the company maintains what they describe as a minimal operational footprint in Nigeria.
According to the sources, Optasia operates with limited administrative infrastructure in the country, employs few Nigerians directly and does not share consumer credit information with local credit bureaus or Nigerian financial institutions.
The FCCPC reportedly maintains that opening the market to additional players would encourage broader local participation, strengthen Nigeria’s rapidly growing fintech ecosystem and reduce the continuous outflow of capital.
Sources further alleged that the company had over the years relied on a combination of legal challenges, lobbying efforts and other pressure tactics to protect its market position, a situation regulators believe has restricted competition and prevented indigenous technology companies from gaining access to the sector.
Presidency Unmoved by External Pressure
Sources disclosed that efforts to preserve the existing market structure reportedly extended beyond legal proceedings.
In addition to obtaining an interim court injunction against regulatory actions, Optasia was said to have sought diplomatic support, including attempts to secure intervention from a foreign President to influence the Nigerian government’s position.
However, officials said the Presidency remained focused on the economic implications of the issue and ultimately sided with the FCCPC’s recommendations after reviewing the Commission’s arguments in favour of greater competition.
According to the sources, government officials concluded that Nigerian technology and fintech firms possess the expertise, infrastructure and operational capacity required to deliver airtime credit and data advance services effectively while ensuring that jobs, investments and profits remain within the country.
Market Liberalisation on the Horizon
As part of the proposed reforms, the FCCPC has recommended the admission of multiple licensed Nigerian fintech and technology companies into the airtime lending and data advance market.
If implemented, the reforms would effectively end a market structure that industry observers say has been dominated by a single player for more than 12 years.
Industry stakeholders believe increased competition could result in greater innovation, improved consumer choice and wider access to digital financial services. Analysts also argue that a more competitive market would help retain billions of naira within Nigeria's economy while encouraging investment in home-grown technology solutions.
The planned intervention is already being viewed as one of the most significant competition-focused reforms under the Tinubu administration. It reflects a broader government strategy aimed at strengthening indigenous participation in key sectors of the economy and reducing dependence on foreign-controlled platforms.
Officials familiar with the reforms believe the changes could reshape the airtime credit lending ecosystem, transforming it from a market dominated by a single foreign operator into a more competitive environment capable of delivering greater economic benefits for consumers, businesses and the nation as a whole.