The Federal Government has backed moves to deregulate Nigeria’s airtime credit and data advance market, a step aimed at increasing indigenous participation, promoting competition and reducing capital flight from the country.
The move follows regulatory efforts by the Federal Competition and Consumer Protection Commission (FCCPC), which has advocated opening the market to Nigerian financial technology firms after years of dominance by foreign service providers.
Sources familiar with the development said President Bola Tinubu approved measures designed to dismantle the long-standing dominance of a South African technology firm, Optasia, in the airtime credit and data advance segment.
According to the sources, the FCCPC argued that the existing market structure had limited competition, restricted local participation and encouraged significant profit repatriation outside Nigeria.
The commission reportedly maintained that opening the sector would align with the Federal Government’s broader economic objectives of promoting local content, strengthening the digital economy, creating jobs and retaining more value within the domestic economy.
Optasia, formerly known as Channel VAS, has operated in the airtime credit and data advance market for about 12 years, providing services primarily to telecommunications operators, including MTN and some of its African affiliates.
The FCCPC is said to have raised concerns about the company’s operational structure and its contribution to Nigeria’s technology ecosystem despite its extensive activities within the country.
According to sources, the commission believes deregulation will encourage innovation, expand opportunities for indigenous fintech companies and support the implementation of the government’s Nigeria First Technology Policy.
“The commission’s position is that opening the market will promote competition, support local technology firms, create employment opportunities and reduce capital flight,” a source familiar with the matter said.
The deregulation initiative is also expected to deepen indigenous participation in Nigeria’s fast-growing fintech industry and reduce foreign exchange outflows associated with technology services.
Sources further disclosed that the FCCPC had presented the Presidency with a list of nine licensed Nigerian companies considered capable of providing airtime credit and data advance services in a competitive market environment.
The commission reportedly argued that local firms possess the technical expertise and operational capacity required to deliver the services currently dominated by foreign operators.
However, sources said Optasia had opposed the deregulation effort through legal and diplomatic channels.
According to the sources, the company has sought judicial intervention while also pursuing diplomatic engagements aimed at preserving its position in the market.
Despite those efforts, the Federal Government is said to have maintained its support for opening the sector to greater competition.
Industry stakeholders believe the move could reshape Nigeria’s digital financial services landscape by encouraging innovation, improving service delivery and creating new opportunities for indigenous technology firms.
Neither the Presidency, FCCPC nor Optasia had issued an official statement on the development as of the time of filing this report.
