President Bola Tinubu has directed the Federal Competition and Consumer Protection Commission, FCCPC, to dismantle the 12-year monopoly allegedly enjoyed by South African technology firm Optasia in Nigeria’s airtime credit lending and data advance market.
The directive, if carried out successfully, would unlock the sector for an estimated N3 trillion annual revenue.
The decision follows a detailed briefing by the FCCPC, at the weekend.
During the briefing, the Commission warned the presidency that Optasia’s long-standing dominance of the market had encouraged massive capital flight, with profits running into trillions of naira, being transferred out of Nigeria every year while generating limited economic value locally.
Sources familiar with the matter claimed the presidency was persuaded by the commission’s position that opening the sector to competition would strengthen Nigeria’s digital economy, create jobs, promote local innovation, and align with the administration’s Nigeria First economic agenda.
Checks showed that for more than a decade, Optasia, formerly known as Channel VAS, has maintained a near-exclusive grip on airtime credit and data advance services, particularly on the MTN network and several of its African affiliates.
The regulatory agency, FCCPC, expressed concerns that despite dominating the market for years, the company maintains little operational footprint in Nigeria.
It was gathered that Optasia has no significant administrative infrastructure in the country, employs virtually no Nigerian staff, and does not share consumer credit data with local credit bureaus or Nigerian financial institutions.
Consequently, FCCPC has reportedly argued that opening the market to competition will promote local participation, strengthen Nigeria’s fintech ecosystem, create employment opportunities, and stem the continuous outflow of capital from the country.
Before Tinubu’s directive to the FCCPC, indications emerged that Optasia attempted to pressure the presidency to preserve its dominant position that extended beyond the courtroom.
Apart from securing an interim court injunction against the FCCPC’s actions, the company reportedly pursued high-level diplomatic interventions, including attempts to enlist the support of a foreign president to persuade President Tinubu to maintain the status quo, the source revealed.
However, the presidency was said to have rejected the pressure after reviewing FCCPC’s economic case for deregulation and competition.
The Commission believes the reform will transform a market long dominated by a single foreign operator into a competitive ecosystem capable of generating greater prosperity for Nigerian businesses, consumers, and the wider economy.
