Tinubu Backs FCCPC as FG Unveils 9 Firms Approved to Lend Airtime, Data
President Bola Tinubu has approved a major shake-up of Nigeria's airtime credit and data advance market as the Federal Competition and Consumer Protection Commission (FCCPC) unveiled nine companies licensed to operate in the sector. The move is aimed at dismantling what regulators describe as a 12-year monopoly allegedly controlled by South African technology firm Optasia, formerly known as Channel VAS.
Officials say the reform could unlock a market estimated to be more than N3 trillion annually while boosting local participation in Nigeria's fast-growing fintech ecosystem.
Tinubu Backs Market Liberalisation
According to sources familiar with the development, the FCCPC briefed the Presidency on concerns that Optasia's long-standing dominance had encouraged massive capital flight, with trillions of naira in profits reportedly moved out of Nigeria over the years. The Commission argued that opening the sector to more players would deepen competition, create jobs, strengthen local innovation and support President Tinubu's Nigeria First economic policy, according to a Vanguard report.
Presidency officials were reportedly convinced that Nigerian fintech firms possess the technology, infrastructure and expertise required to compete effectively in the airtime lending and data advance business. As part of the reforms, the FCCPC approved nine firms to operate in the market, ending what many industry observers considered a near single-player system.
FCCPC Raises Monopoly Concerns
For more than a decade, Optasia has dominated airtime credit and data advance services, especially on the MTN network and several of its African operations. Regulators are said to be concerned that, despite years of market control, the company maintains a limited operational presence in Nigeria. Sources claim the firm has little administrative infrastructure locally, employs few Nigerian workers and does not adequately share consumer credit data with Nigerian financial institutions or local credit bureaus.
The FCCPC reportedly believes the market structure limits opportunities for indigenous technology companies while slowing innovation and competition. Officials also alleged that the company relied on legal battles, lobbying and pressure tactics over the years to maintain its dominant position in the sector.
Tinubu Rejects External Pressure
Sources disclosed that efforts to preserve the existing arrangement extended beyond the courtroom. Apart from securing an interim court injunction against some FCCPC actions, the company allegedly pursued diplomatic channels, including attempts to seek support from a foreign President to influence the Nigerian government. However, the Presidency reportedly rejected the pressure after reviewing the economic implications presented by regulators. Government officials concluded that liberalising the market would help retain investments within Nigeria while ensuring that profits and employment opportunities benefit local businesses and workers.
What the Reform Means for Nigerians
Industry stakeholders say increased competition is expected to drive innovation, improve service quality and expand consumer choice in the airtime and data lending market. The reforms are also projected to deepen financial inclusion by allowing more technology companies to provide digital credit solutions to millions of Nigerians. Analysts describe the intervention as one of the most significant competition-focused reforms under the Tinubu administration and a major push to strengthen indigenous participation in Nigeria's digital economy.
Officials believe the decision could transform the sector from a foreign-dominated market into a more competitive ecosystem capable of generating greater economic value for Nigerian businesses and consumers.
