● FCCPC-backed deregulation to open N3trn market to nine Nigerian fintechs, curb capital flight
By Our Reporter
President Bola Tinubu has ordered the Federal Competition and Consumer Protection Commission, FCCPC, to break South African firm Optasia’s 12-year monopoly on airtime credit lending and data advance services in Nigeria, The CONCLAVE has authoritatively gathered.
The move follows FCCPC’s briefing that Optasia’s model has fueled capital flight for over a decade, with the firm repatriating an estimated N3 trillion annually in profits to South Africa while paying minimal tax locally.
—No Nigerian staff, no local data sharing—
For 12 years, Optasia, formerly Channel VAS, operated almost exclusively, providing credit and data advance services mainly to MTN and other African affiliates. Sources told The CONCLAVE the company has no administrative infrastructure in Nigeria, employs no Nigerians, and does not share credit data with Nigerian bureaus or companies.
“The Commission’s argument is that deregulating 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 has resisted the deregulation through legal and diplomatic channels. While its interim injunction to restrain FCCPC is already in court, sources confirmed the firm also deployed a diplomatic push, using President Cyril Ramaphosa to reach out to President Tinubu to preserve the deal.
The diplomatic push fell through. Before Optasia’s intervention, FCCPC had briefed Tinubu on the economic impact of the monopoly. The Presidency accepted FCCPC’s “economic-sense argument” that Nigerian fintechs have the capacity and technical know-how to provide the same services.
—9 Nigerian firms set to enter market—
To strengthen credit data infrastructure and promote competition, FCCPC forwarded a list of 9 licensed Nigerian companies to the Presidency to upend Optasia’s grip:
1. Technotrends Platforms Nigeria Limited
2. Total Tim Nigeria Limited
3. Fonyou Technologies Nigeria Limited
4. Rane Interactive Medien CLS Limited
5. MRS Innovation Nigeria Limited
6. Mode NG Applications Nigeria Limited
7. ERL Telecoms Service Limited
8. Cloud Interactive Associate Limited
9. Coverage Broadband Limited
President Tinubu was swayed by the argument and ordered FCCPC to upend the Optasia model in favour of strengthening Nigeria’s digital economy to generate domestic prosperity instead of offshore profit, sources said.
The deregulation aligns with the administration’s broader push to deepen local participation in fintech and reduce forex outflows from technology services.
