Politics
Nigerians borrowed N4.6tn worth of airtime in 2025
MILLIONS of Nigerians increasingly relied on borrowed airtime and mobile credit in 2025, with telecom-linked lending surging to an estimated N4.61 trillion.
The development highlights how economic hardship is pushing consumers to depend on debt for basic communication.
Punch reported that new financial statements released by fintech company Optasia showed that mobile subscribers across Nigeria and other emerging markets received airtime advances worth $3.18 billion in 2025, up from $2.83 billion in 2024. Africa accounted for more than 94 per cent of the transactions, making the continent the company’s largest market.
The figures underscore the growing dependence of millions of underbanked consumers on small-value digital loans at a time when inflation and declining purchasing power continue to squeeze household incomes.
Optasia, which partners with telecom operators to provide airtime and nano-loans, said its platform uses subscribers’ behaviour and credit history to determine eligibility for advances.
Beyond airtime borrowing, the company’s Mobile Financial Services segment facilitated nano-loans worth $2.3 billion in 2025, more than double the $967.9 million recorded the previous year.
Although Optasia did not disclose country-by-country lending volumes, its financial statements suggest Nigeria remains one of its most important markets. The company maintains two wholly owned Nigerian subsidiaries, Nairtime Nigeria Limited and Xtra MFS Nigeria Limited and reported net naira exposure of N19.37 billion at the end of 2025.
Nigeria’s importance to the group was further reflected in the sharp rise in trade receivables linked to its operations. Gross trade receivables from Nigeria rose by 103.6 per cent to $7.73 million in 2025 from $3.8 million a year earlier, one of the strongest increases across its markets.
The expansion of digital lending translated into stronger earnings for the company, revenue rose by 75.5 per cent to $265.36 million, while profit after tax increased to $43.13 million.
However, the rapid growth in lending also brought increased risks because Optasia’s provisions for expected credit losses nearly doubled to $65.21 million, indicating rising defaults associated with airtime advances and nano-loan products.
The growth comes amid an ongoing regulatory battle over Nigeria’s airtime credit market.
Reports had claimed that the Federal Government was considering opening the sector to indigenous fintech firms after concerns that Optasia had maintained dominance of the market for more than a decade.
According to the reports, regulators argued that broader participation would encourage competition, strengthen local content and reduce capital flight.
But the Federal Competition and Consumer Protection Commission Director of Corporate Affairs, Ondaje Ijagwu, denied claims that it recommended nine companies for approval or played any role in granting operating licences.
The controversy began in April after MTN, Airtel, Glo and T2mobile suspended airtime credit services following an FCCPC directive seeking compliance with the Digital, Electronic, Online or Non-traditional Consumer Lending Regulations.
The regulations classified airtime credit as a form of consumer lending, triggering a dispute with the Nigerian Communications Commission over regulatory oversight.
Although services have since resumed, the matter remains before the Federal High Court in Lagos, with the substantive case scheduled for hearing on July 20, 2026.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.
