Nigerian fintech firms are positioning to claim a share of the country’s multi-trillion-naira airtime lending market as the clock ticks on a regulatory deadline that could break the dominance of foreign players.
This is even as civil society organisations and local fintech associations have urged the federal government to resist industry pressure and speedily enforce the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025, saying the rules will end the monopoly of Nairatime, a South African-owned intermediary dominating airtime lending partnerships.
Under the current arrangement, MTN, which has the largest market share, partners exclusively with Nairatime, taking 75 per cent of revenue from airtime loans while the partner receives 25 per cent.
Data from the Nigerian Communications Commission, NCC, shows that between 2019 and 2023, MTN alone advanced ₦5.6 trillion in airtime and data loans, charging a flat 15 per cent interest rate.
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Section 24 of the new regulation mandates that all telcos must, within 60 days, engage at least two intermediaries for loan activation, one of which must be a wholly Nigerian-owned company. The provision is designed to open the market for homegrown fintechs and foster fair competition.
“The monopoly has stifled innovation, inflated costs for consumers, and blocked Nigerian-owned companies from participating in a multi-trillion-naira industry. The FCCPC must hold the line,” said Ibrahim Adesina, an economist and consumer protection advocate
Another economist and tech enthusiast, Kingsley Utah, added: “Every day the implementation is delayed is another day of lost revenue and opportunity for Nigerian businesses. This is not just about fairness; it is about building local capacity and keeping value within our economy.”
