…sends profits abroad; President Tinubu kicks
A South African Company Has Been Running Nigeria’s Entire Airtime Lending Market For 12 Years And Sending The Profits Abroad. Tinubu Just Ordered That To Stop.
President Tinubu has directed the FCCPC to break the 12 year monopoly of South African firm Optasia on airtime credit lending and data advance services in Nigeria.
The decision followed a high level briefing by the FCCPC and marks a major policy shift aimed at opening up an estimated ₦3 trillion annual market to Nigerian fintechs.
Every time you borrowed airtime on MTN, Airtel or Glo the transaction was processed by Optasia. For 12 years. With the profits leaving Nigeria.
Optasia allegedly has no significant administrative infrastructure in Nigeria, employs virtually no Nigerian staff and does not share consumer credit data with local credit bureaus or Nigerian financial institutions.
The FCCPC has unveiled nine Nigerian companies now licensed to operate in the sector ending what regulators describe as a single player market.
But There Is A Complication
Optasia has already filed an interim injunction before a Federal High Court seeking to restrain the FCCPC from implementing any deregulation measures.
So the presidential directive exists. Nine Nigerian fintechs are licensed. And Optasia is in court trying to stop the entire thing.
Until that court matter is resolved the monopoly technically remains protected by an interim court order. A presidential directive does not override a court order under Nigerian law. The judiciary has the final say — not the executive.
What The Law Says
Under the Federal Competition and Consumer Protection Act 2018 the FCCPC has the power to investigate dominant firms and compel structural remedies where market abuse is established. Breaking up a monopoly is explicitly within its statutory mandate.
Under Section 4 of the 1999 Constitution the National Assembly has the power to legislate on competition and market regulation.
Where the FCCPC’s regulatory action is challenged in court the strength of the statutory framework behind it determines whether the injunction ultimately holds.
Optasia’s legal strategy is clear. Delay implementation long enough to negotiate better exit terms. Nigerian courts move slowly. That works in their favour for now.
What This Means For You
If the deregulation succeeds nine Nigerian fintechs competing for your airtime lending business means lower fees, better terms and credit data that actually stays in Nigeria and builds your local credit profile.
If Optasia wins in court nothing changes and the ₦3 trillion market continues flowing to South Africa.
Watch the Federal High Court proceedings. That is where this is actually being decided.
© Damian Dondo
