JamzNG Latest News, Gist, Entertainment in Nigeria
… Africa accounts for 94% of the total $3.18 billion
…Increasing hardship is fueling a surge in lending in the telecommunications sector
Daud Olatunji
Mobile phone users in Nigeria and other emerging markets borrowed airtime worth $3.18 billion (about 4.61 trillion naira) in 2025, underscoring the growing reliance on short-term digital loans amid worsening economic conditions.
This was revealed in fintech firm Optasia’s 2025 consolidated financial statements, which showed that airtime advances increased by 12.3% from the $2.83 billion recorded in 2024.
The report indicates that Africa remained the dominant market, accounting for $2.99 billion or 94.2% of total transmission credit disbursed during the period, compared to $2.53 billion a year earlier. Europe and Asia contributed $96.1 million, while the Middle East contributed $87.7 million.
The data highlights a growing reliance on telecom-based credit services by millions of users, particularly in economies like Nigeria, where access to formal financial services remains limited and households’ purchasing power continues to weaken.
The findings showed that despite strong growth in dollar terms, the value of the transmission credit naira increased at a slower pace, reflecting the relative appreciation of the currency, with the exchange rate closing at N1,450.58/$ in 2025 from N1,547.30/$ in 2024.
Optasia explained that its platform allows telecom operators to extend airtime credit by analyzing subscriber behavior, usage patterns and credit history to determine eligibility and credit limits.
The company said it also shares the credit risk, noting that it indemnifies mobile network operators if subscribers fail to repay advances within a specified period.
In addition to radio lending, nanolending transactions increased significantly, more than doubling to $2.30 billion in 2025 from $967.9 million in 2024. Africa accounted for $1.41 billion, or 61.4% of the total.
The surge in digital lending boosted the company’s financial performance, with revenues rising 75.5% to $265.36 million, driven largely by mobile financial services which contributed $167.53 million, while airtime credit services generated $96.86 million.
Profit after tax increased to $43.13 million from $36.23 million a year earlier, while total assets more than doubled to $302.17 million.
Nigeria emerged as a key market for the company, with gross trade receivables rising 103.6% to $7.73 million, indicating an increase in transaction volumes and outstanding balances linked to its operations in the country.
However, the report flagged Nigeria as a major foreign exchange risk market for the company, with net naira exposure of N19.37 billion as of December 2025, although this represents a decline from N25.03 billion recorded in 2024.
Optasia added that a 5% movement in the exchange rate would impact its capital by $668,000, reflecting continued sensitivity to currency fluctuations.
The rapid expansion of telecom-related lending also increased credit risks, as provisions for expected credit losses rose sharply to $65.21 million in 2025 from $33.42 million a year earlier.
Meanwhile, regulatory uncertainty continues to weigh on the pass-through credit sector in Nigeria, following the federal government’s moves to open the market to local fintech companies and promote competition.
The Federal Competition and Consumer Protection Commission, however, denied reports linking it to the approval of new entrants, saying it remains bound by a court order suspending enforcement of the 2025 Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations.
The dispute had previously disrupted airtime credit services after telecom operators temporarily suspended offers in accordance with regulatory directives before gradually restoring services nationwide.
Despite the uncertainties, analysts say the sustained growth of transmission and nanolending services reflects strong demand for alternative credit channels, particularly among underbanked and economically challenged populations.
‘Want to share a story with us? Do you want to advertise with us? Do you need advertising for a product, service or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Please donate any amount HERE
