The FCCPC’s new regulations represent one of the most patriotic and pro-growth policy moves Nigeria has seen in the fintech space in years. They aim to ensure Nigerian fintechs thrive in fair competition, protect consumers from exploitative lending practices and guarantee that Nigeria retains a share of the digital wealth generated within its economy.
Last week, I explained how MTN and other telecom giants are lobbying lawmakers and senior government officials to suspend the Federal Competition and Consumer Protection Commission’s (FCCPC) new digital lending regulations, reforms designed to give Nigerian fintechs a fair chance in a space long dominated by foreign players.
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Now, Reuters has confirmed what’s really at stake. According to its recent report, Optasia, the South African parent company of Nairatime Nigeria Ltd, is preparing to raise up to 6 billion rand ($375 million) through an Initial Public Offering (IPO) on the Johannesburg Stock Exchange. For context, Optasia exclusively powers MTN’s airtime and data lending business (XtraTime) in Nigeria, one of the largest and most lucrative micro-lending operations on the continent.
Between 2019 and 2023, MTN reportedly earned an estimated ₦5.6 trillion from airtime and data lending alone. Optasia, through Nairatime, took roughly 25 per cent of that value, amounting to billions of naira annually, extracted quietly from Nigerian consumers and from fintech opportunities that could have gone to local innovators. And yet, while this enormous wealth was created here in Nigeria, from Nigerian users, using Nigerian networks, not a single kobo of that value will stay here. The IPO will happen in South Africa, with no opportunity for Nigerian pension funds, retail investors, or fintech entrepreneurs to participate in the value they helped create.
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This isn’t just capital flight. It’s value flight. And it exposes exactly why Nigeria needs the FCCPC’s new Digital Lending Regulations.
Nothing illustrates this danger more vividly than Optasia’s upcoming IPO. Nigeria creates the value, foreign firms capture it, and then list it abroad, locking Nigerians out of wealth they helped build. It’s a familiar story, the same extractive pattern that haunted Nigeria’s oil sector for decades, now re-emerging in the digital economy. Only this time, it’s happening through algorithms, data, and APIs instead of oil rigs and barrels.
What the New Law Actually Does
Contrary to what the telcos claim, the new regulations don’t punish innovation, they democratise opportunity. Under the FCCPC framework, no telecom company can maintain a single exclusive foreign partner for digital lending. At least one Nigerian-owned company must be part of every partnership. Additionally, all players must register and report to the FCCPC for transparency, consumer protection, and fair market competition.
The intention is to ensure that Nigeria’s digital economy captures a fair share of the value it creates. By doing so, the FCCPC is protecting not just consumers, but also the long-term viability of our fintech ecosystem, ensuring that wealth generated locally is partly retained within our borders.
The Double Standard: MTN’s Support for Optasia vs Local Fintechs
The irony is hard to miss. MTN has backed Optasia’s expansion into 14 African countries, giving the South African firm privileged access and scale across the continent. Yet, the same cannot be said of MTN’s support for local Nigerian fintech startups. Despite operating in Africa’s largest economy and most vibrant tech ecosystem, MTN has consistently preferred foreign technical partners for its high-value digital lending products, leaving Nigerian innovators locked out of the value chain.
So, when the FCCPC steps in to level the playing field, these same corporate giants cry foul, claiming the rules will “disrupt operations.” But what’s really being disrupted isn’t innovation, it is monopoly, opacity, and unchecked profit extraction.
If we bow now to corporate lobbying and foreign pressure, the message will be devastatingly clear, which is that no matter how innovative you are as a Nigerian founder, the market still belongs to outsiders. That’s not just bad economics, it’s bad nation-building. But Nigeria has a chance to chart a new course, one where innovation and inclusion go hand in hand, where value creation and value retention coexist.
Nothing illustrates this danger more vividly than Optasia’s upcoming IPO. Nigeria creates the value, foreign firms capture it, and then list it abroad, locking Nigerians out of wealth they helped build. It’s a familiar story, the same extractive pattern that haunted Nigeria’s oil sector for decades, now re-emerging in the digital economy. Only this time, it’s happening through algorithms, data, and APIs instead of oil rigs and barrels.
This is digital colonialism, where the market is local, but the profits are foreign.
Why the FCCPC Must Stand Firm
The FCCPC’s new regulations represent one of the most patriotic and pro-growth policy moves Nigeria has seen in the fintech space in years. They aim to ensure Nigerian fintechs thrive in fair competition, protect consumers from exploitative lending practices and guarantee that Nigeria retains a share of the digital wealth generated within its economy.
If we bow now to corporate lobbying and foreign pressure, the message will be devastatingly clear, which is that no matter how innovative you are as a Nigerian founder, the market still belongs to outsiders. That’s not just bad economics, it’s bad nation-building. But Nigeria has a chance to chart a new course, one where innovation and inclusion go hand in hand, where value creation and value retention coexist. The government must therefore stand firm, reject the lobbying, and fully implement the FCCPC digital lending regulations. Nigeria cannot continue to be the field where others harvest without planting.
Ayodele Adio is a media and communications strategist.
