Nine Fintechs Tap Into N3tr Opportunity After FCCPC Eases Airtime Credit Lending Restrictions
Nigeria’s airtime credit lending market, estimated to be worth approximately N3 trillion annually, is at the centre of a major regulatory shake-up, as the federal government moves to break a long-standing foreign monopoly and hand a share of the sector to homegrown fintech companies.
President Bola Tinubu has directed the Federal Competition and Consumer Protection Commission (FCCPC) to dismantle the 12-year monopoly held by South African technology firm Optasia, formerly known as Channel VAS, over airtime credit lending and data advance services in Nigeria. The directive followed a high-level briefing by the FCCPC to the Presidency, marking one of the most consequential policy shifts in Nigeria’s telecoms and digital finance space in recent memory.
The FCCPC forwarded the names of nine Nigerian companies to the Presidency, describing them as licensed and technically capable of providing airtime credit and data advance services. The nine companies are: Technotrends Platforms Nigeria Limited, Total Tim Nigeria Limited, Fonyou Technologies Nigeria Limited, Rane Interactive Medien CLS Limited, MRS Innovation Nigeria Limited, Mode NG Applications Nigeria Limited, ERL Telecoms Service Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited.
At the heart of the push to open up the airtime credit lending market is a concern over capital flight. Between 2019 and 2023, MTN alone generated over 5.6 trillion naira from airtime advances, with 25 percent of revenue going to a South African firm. The FCCPC argued that deregulating the sector will promote competition, align with the Nigeria First Technology Policy, create local employment, and discourage capital flight to South Africa, which it alleged was perpetuated by Optasia’s dominance.
A presidential source stated that President Tinubu was “swayed by the argument” that strengthening Nigeria’s digital economy should generate domestic prosperity rather than foreign profit, and that the liberalization aligns with his administration’s broader efforts to increase local participation in fintech and reduce foreign exchange outflows.
Under the new arrangement, telecoms operators will still provide the airtime, but licensed lenders will handle the credit, onboarding, and repayment processes. The move is expected to strengthen Nigeria’s credit data infrastructure, stimulate innovation, increase consumer choice, create employment opportunities, and retain a larger share of industry revenues within the country.
However, the story took a twist just hours after it broke. The FCCPC issued a statement denying any involvement in the submission of fintech names to the Presidency, with its Director of Corporate Affairs, Ondaje Ijagwu, stating that the commission was “not aware of, and was not involved in” the claims attributed to it in the reports. The commission clarified that its position on digital and non-traditional lending is limited to its regulatory responsibilities under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025, also known as the DEON Regulations.
Despite the contested attribution, the FCCPC is expected to publish implementation guidelines within 60 days, detailing how the monopoly will be unwound and what conditions new market entrants must meet.
The developments around the airtime credit lending market are still unfolding, and it remains to be seen how the regulatory contradictions will be resolved. What is clear is that a multi-trillion naira sector long dominated by a single foreign operator is now firmly in the crosshairs of Nigeria’s economic nationalism agenda.
