BIG SHAKE-UP LOOMING! President Tinubu has reportedly directed the FCCPC to break the alleged 12-year monopoly in Nigeria’s airtime and data lending market. The move could open the sector to competition, boost local businesses, and unlock an estimated N3 trillion in annual revenue.
President Bola Ahmed Tinubu has reportedly directed the Federal Competition and Consumer Protection Commission (FCCPC) to take steps aimed at ending the alleged 12-year monopoly held by South African technology firm Optasia in Nigeria’s airtime credit and data lending market.
The move is expected to open up the sector to greater competition and could unlock an estimated N3 trillion in annual revenue opportunities within the industry.
According to reports, the directive followed a detailed briefing by the FCCPC, which raised concerns over Optasia’s long-standing dominance of the market and the alleged transfer of huge profits out of Nigeria with limited local economic impact.
The commission reportedly argued that opening the market to more competitors would strengthen Nigeria’s digital economy, encourage innovation, create jobs, and support local technology companies.
Sources familiar with the matter claimed that Optasia, formerly known as Channel VAS, has maintained a dominant position in airtime credit and data advance services for more than a decade, particularly on MTN and some of its African operations.
The FCCPC is also said to have expressed concerns over the company’s limited operational presence in Nigeria, including allegations that it employs few local staff and does not significantly contribute to the local financial ecosystem.
Regulators believe that introducing competition into the sector would encourage indigenous technology firms to participate, improve consumer choices, and reduce capital outflow from the country.
Reports further claimed that the company had previously relied on legal actions and other efforts to maintain its market position, including obtaining an interim court injunction against certain FCCPC actions.
However, after reviewing the economic arguments presented by the commission, the presidency reportedly decided to support reforms aimed at creating a more competitive marketplace.
The FCCPC believes the planned reforms could transform the industry from a market dominated by a single operator into a more open and competitive sector capable of benefiting Nigerian businesses, consumers, and the broader economy.
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