Tinubu directs FCCPC to dismantle monopoly in airtime, data borrowing sector

President Bola Ahmed Tinubu is said to have issued an instruction to the Federal Competition and Consumer Protection Commission (FCCPC) to break down the supposed monopoly that existed for 12 years in the Nigerian airtime credit and data advances market by the South African tech company, Optasia.

If the instruction is executed, it could be seen as unlocking the sector which is estimated to be worth ₦3 trillion per year to foster healthy competition and involvement of more local players in the business.

From sources privy to the development, it appears the move was informed by the briefing that the FCCPC gave on the issue, noting that such activities by the firm were having detrimental effects on the country as huge amounts of naira were being repatriated annually, leading to the flight of capital.

Checks indicate that Optasia, formerly known as Channel VAS, has maintained a strong presence in airtime credit and data advance services in Nigeria for over a decade, particularly through partnerships with major telecom operators, including MTN. The FCCPC is said to have expressed concern that despite this dominance, the firm has limited operational presence in Nigeria, with minimal local staffing and no significant integration with domestic credit reporting systems.

Regulatory sources argue that this structure has weakened the development of Nigeria’s fintech ecosystem and limited opportunities for indigenous technology firms. The planned reform is aimed at opening the market to competition, encouraging local innovation, creating jobs, and aligning with the Federal Government’s “Nigeria First” economic agenda.

However, the move is not without controversy. Sources claim Optasia has previously sought legal and diplomatic intervention to protect its market position, including securing interim court orders against regulatory action. There are also allegations that the company engaged in lobbying efforts at different levels to influence policy decisions in its favour, claims which remain unverified.

Despite reported pressure, the presidency is said to have aligned with the FCCPC’s position that liberalising the sector would deliver broader economic benefits, strengthen competition, and reduce capital outflows. If fully implemented, the policy shift could significantly reshape Nigeria’s airtime credit and digital lending space, opening it up to multiple players and boosting fintech participation.

The FCCPC maintains that the ultimate goal is to transform a long-dominated market into a more competitive ecosystem capable of delivering greater value to consumers and the wider Nigerian economy.