FG moves to break airtime lending monopoly

President Bola Ahmed Tinubu has directed a major restructuring of Nigeria’s airtime credit lending system, effectively ending what officials describe as a 12-year monopoly held by fintech company Optasia in the sector.

The directive is aimed at opening up the market to greater competition, improving consumer choice, and reducing costs associated with airtime advance services widely used by low-income mobile subscribers.

Airtime credit services allow users to borrow mobile credit and repay later, a system that has become essential for millions of Nigerians who rely on mobile communication for daily transactions and connectivity.

Government sources say the decision follows concerns over limited competition, pricing structures, and access conditions within the airtime lending ecosystem.

Under the new framework, additional licensed operators are expected to be introduced, with regulators tasked to ensure fair competition and consumer protection.

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Industry stakeholders say the move could reshape Nigeria’s mobile financial services landscape, potentially lowering costs and expanding access for underserved populations.

However, some analysts warn that sudden market liberalization must be carefully managed to avoid service disruptions or instability in the telecom-fintech ecosystem.

The federal government is expected to release detailed regulatory guidelines in the coming weeks, outlining participation rules for new entrants and compliance requirements for existing operators.

The reform is part of broader efforts to deepen digital financial inclusion and strengthen competition across Nigeria’s rapidly expanding fintech sector.