President Bola Ahmed Tinubu has reportedly directed the Federal Competition and Consumer Protection Commission (FCCPC) to initiate measures aimed at ending the long-standing dominance of South African technology firm Optasia in Nigeria’s airtime credit and data lending market.
The move is expected to open the sector to wider competition and create new revenue opportunities estimated at about N3 trillion annually across the industry.
Reports indicate that the directive followed a detailed presentation by the FCCPC, which raised concerns about Optasia’s alleged 12-year control of the market and the significant profits said to have been repatriated outside Nigeria.
According to the commission, increasing competition would strengthen the country’s digital economy, encourage innovation, and provide growth opportunities for local technology firms.
Sources familiar with the matter claimed that Optasia, formerly known as Channel VAS, has maintained a dominant position in airtime and data advance services, particularly through its operations on MTN and some other African markets.
The FCCPC also reportedly questioned the company’s local economic impact, citing concerns about its limited operational footprint and the relatively small number of Nigerian employees.
Regulators believe that opening the market to additional players would boost consumer choice, encourage indigenous participation, and reduce capital flight from the sector.
Reports further alleged that the company had previously used legal avenues, including securing an interim court injunction, to protect its market position against certain regulatory actions.
Following a review of the FCCPC’s economic arguments, the presidency is said to have endorsed reforms designed to create a more competitive industry that benefits consumers, local businesses, and the broader Nigerian economy.
