The Federal Government has thrown its weight behind regulatory efforts aimed at opening Nigeria’s airtime credit and data advance market to indigenous financial technology firms, in a move designed to curb capital flight and boost local participation in the digital economy.
The development follows reports that President Bola Tinubu approved measures to dismantle the 12-year dominance of South African technology company Optasia in the sector.
According to sources familiar with the matter, the decision came after extensive consultations between the Presidency and the Federal Competition and Consumer Protection Commission (FCCPC), which maintained that the existing market structure had suppressed competition, limited opportunities for local firms, and facilitated significant profit repatriation outside Nigeria.
The commission reportedly argued that liberalising the market aligns with the administration’s broader economic objectives, including promoting local content, strengthening the digital economy, creating employment opportunities, and retaining more value within Nigeria’s financial ecosystem.
FCCPC sources claimed that Optasia’s business model had contributed to sustained capital flight over the past decade, alleging that the company repatriates approximately N3 trillion in profits annually to South Africa while making minimal tax contributions within Nigeria.
The commission also expressed concerns over Optasia’s operational structure, noting that despite its extensive activities in Nigeria’s telecommunications sector, the company maintains a limited local footprint and contributes little to the country’s technology development ecosystem.
Optasia, formerly known as Channel VAS, has been a major player in the airtime credit and data advance segment for about 12 years, providing services primarily to MTN and some of its African affiliates.
FCCPC maintains that opening the market to more participants would encourage healthy competition, stimulate innovation, support the Nigeria First Technology Policy, and create new opportunities for Nigerian-owned fintech companies.
“The Commission’s position is that deregulating the sector will promote competition, strengthen the Nigeria First Technology Policy, create employment opportunities for Nigerians, and discourage the capital flight that has persisted under the current arrangement,” a source within the FCCPC disclosed.
The deregulation initiative is also said to be part of the Tinubu administration’s broader strategy to deepen indigenous participation in the fintech sector while reducing foreign exchange outflows associated with technology-driven services.
However, sources revealed that Optasia has opposed the proposed reforms through both legal and diplomatic channels. The company is reportedly pursuing an interim injunction in court against the FCCPC while also seeking diplomatic intervention to preserve its market position.
Despite those efforts, government sources indicated that the Presidency remained convinced by the FCCPC’s assessment that Nigerian fintech firms possess the technical expertise and capacity to provide comparable airtime credit and data advance services.
To support the transition and strengthen the country’s credit data infrastructure, the FCCPC is said to have submitted a list of nine licensed Nigerian fintech companies to the Presidency as potential participants in the newly liberalised market.
Industry observers believe the move could reshape Nigeria’s digital finance landscape by fostering greater competition, encouraging local innovation, and retaining more economic value within the country.
