President Bola Tinubu has approved the deregulation of Nigeria’s airtime credit lending and data advance services, paving the way for nine licensed Nigerian fintech companies to enter a market previously dominated by the South African firm Optasia, it has been reliably gathered.

The decision, communicated through the Federal Competition and Consumer Protection Commission (FCCPC), is expected to dramatically alter the landscape of digital lending in Nigeria’s telecoms sector.

The market, estimated to be worth approximately N3 trillion annually in transaction value, has been subject to what the FCCPC described as a 12-year virtual monopoly by Optasia (formerly Channel VAS), which operates in Nigeria and other African affiliates.

According to a list obtained, the FCCPC has forwarded the names of nine Nigerian companies to the Presidency as licensed and technically capable of providing airtime credit and data advance services.

These firms are now poised to enter the market once the deregulation framework is finalised.

The nine companies are: Technotrends Platforms Nigeria Limited, Total Tim Nigeria Limited, Fonyou Technologies Nigeria Limited, Rane Interactive Medien CLS Limited, MRS Innovation Nigeria Limited, Mode NG Applications Nigeria Limited, ERL Telecoms Service Limited, Cloud Interactive Associate Limited, and Coverage Broadband Limited.

Central to the government’s decision are allegations that Optasia’s monopoly has fueled significant capital flight from Nigeria. It is alleged that the firm repatriates an estimated N3 trillion annually in profits to South Africa while paying minimal tax locally. These allegations, detailed in the FCCPC’s briefing to the Presidency, have not been independently verified, and Optasia has not publicly responded.

An FCCPC source explained the Commission’s position: “The argument is that deregulating the sector will promote competition, the Nigeria First Technology Policy, employment for Nigerians, and discourage capital flight to South Africa as hitherto perpetrated by Optasia.”

It is further alleged that Optasia maintains no administrative infrastructure in Nigeria, employs no Nigerian staff, and does not share credit data with Nigerian bureaus or other companies. This lack of local integration, according to the FCCPC, has prevented the development of a robust credit data ecosystem that could benefit Nigerian consumers and small businesses.

A source close to the Presidency confirmed that President Tinubu was “swayed by the argument” that strengthening Nigeria’s digital economy should generate domestic prosperity instead of offshore profit. “The deregulation aligns with the administration’s broader push to deepen local participation in fintech and reduce forex outflows from technology services,” the source said.

The path to deregulation has not been smooth. Sources alleged that Optasia has resisted the FCCPC’s moves through both legal and diplomatic channels. The company is said to have obtained an interim injunction from a Federal High Court restraining the FCCPC from proceeding with deregulation.

For Nigerian mobile phone subscribers, deregulation could bring several benefits. Competition among multiple providers typically leads to lower interest rates on airtime credit, more flexible repayment terms, and better customer service. It could also lead to integration with local credit bureaus, helping Nigerians build formal credit histories that can be used to access other financial services.

However, industry observers also caution that the transition must be managed carefully to avoid disruption to existing services. Airtime credit lending is a critical lifeline for millions of Nigerians who rely on mobile connectivity for work, communication, and emergency situations.

The FCCPC is expected to oversee a phased transition, allowing Optasia to continue operating temporarily while Nigerian firms are onboarded. A key issue to be resolved is data portability: how consumer credit histories held by Optasia will be transferred or made accessible to new entrants. Sources say the FCCPC is considering compelling Optasia to share anonymised credit data with Nigerian bureaus as a condition of continued operation during the transition period.

The nine Nigerian companies on the FCCPC’s list represent a mix of established telecom value-added service providers and newer fintech players. Several have existing relationships with mobile network operators for other services, though none have previously been permitted to offer airtime credit lending at scale due to Optasia’s exclusive arrangements.

A representative of one of the nine companies, who spoke on condition of anonymity because he was not authorised to discuss the matter publicly, expressed optimism: “We have the technology, the capital, and the local knowledge. We understand Nigerian consumers because we are Nigerian consumers. All we needed was a level playing field.”

The FCCPC is expected to issue a regulatory framework for the sector within two months, setting out licensing requirements, consumer protection rules, and data governance standards. The commission has indicated it will prioritise transparency, fair competition, and the prevention of predatory lending practices—issues that have plagued other segments of Nigeria’s digital lending industry.

President Tinubu’s directive, if fully implemented, will mark one of the most significant interventions in Nigeria’s fintech sector since the Central Bank of Nigeria’s regulatory sandbox programme. It also signals a more assertive approach to enforcing local content and economic nationalism in digital services—a policy shift that could have implications for other foreign-dominated technology sectors in Africa’s largest economy.