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● FCCPC-backed deregulation will open the N3trn market to nine Nigerian fintechs and limit capital flight
From our journalist
President Bola Tinubu has directed the Federal Competition and Consumer Protection Commission, FCCPC, to break the 12-year monopoly of South African company Optasia on airtime credit lending and data advance services in Nigeria, CONCLAVE has authoritatively gathered.
The move follows the FCCPC briefing that Optasia’s model has fueled capital flight for over a decade, with the company repatriating around N3 trillion in profits a year to South Africa while paying minimal taxes locally.
—No Nigerian staff, no local data sharing—
For 12 years Optasia, formerly Channel VAS, operated almost exclusively, providing credit and data advance services primarily to MTN and other African affiliates. Sources told CONCLAVE that the company has no administrative infrastructure in Nigeria, does not employ Nigerians and does not share credit data with Nigerian offices or companies.
“The Commission’s contention is that deregulation of 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,” an FCCPC source said.
—Diplomatic push fails—
Optasia resisted deregulation through legal and diplomatic channels. While its interim injunction to restrain the FCCPC is already in court, sources have confirmed that the company has also used a diplomatic push, using President Cyril Ramaphosa to contact President Tinubu to preserve the agreement.
The diplomatic push failed. Prior to Optasia’s intervention, the FCCPC had briefed Tinubu on the economic impact of the monopoly. The Presidency accepted the FCCPC’s “economically sound argument” that Nigerian fintechs have the capacity and technical know-how to provide the same services.
—9 Nigerian companies ready to enter the market—
To strengthen the credit data infrastructure and promote competition, the FCCPC has forwarded to the Presidency a list of 9 authorized Nigerian companies to loosen Optasia’s grip:
1. Technotrends Nigeria Limited Platforms
2. Total Tim Nigeria Limited
3. Fonyou Technologies Nigeria Limited
4. Rane Interactive Medien CLS Limited
5. MRS Innovation Nigeria Limited
6. NG Mode Applications Nigeria Limited
7. ERL Telecommunications Service Limited
8. Cloud Interactive Associates Limited
9. Limited broadband coverage
President Tinubu was swayed by the argument and directed the FCCPC to overturn the Optasia model in favor of strengthening Nigeria’s digital economy to generate domestic prosperity rather than offshore profits, sources said.
The deregulation is in line with the administration’s broader push to deepen local participation in fintech and reduce foreign exchange outflows from technology services.
