Optasia, the South African-listed AI micro-lender powers the airtime lending businesses of telecom operators Vodacom and MTN across Africa has gleefully announced that it is back in business in Nigeria. It could be recalled that its operations were suspended in April after the Federal Competition and Consumer Protection Commission (FCCPC) issued new rules requiring digital lenders, including telcos advancing airtime credit, to register and obtain fresh approval. Optasia’s Nigerian subsidiary, Nairtime Nigeria, fell under that restriction and paused airtime lending.
Every time you run out of airtime on an MTN or Vodacom line and the network lends you a small top-up to keep you connected, there’s a good chance Optasia is the company making that happen behind the scenes.
‘We’re back’: On Wednesday, June 24, Optasia announced that its Nigerian operations are fully restored. A court restraining order obtained by the Wireless Application Service Providers Association of Nigeria (WASPAN) suspended the FCCPC’s enforcement of its digital lending regulations pending a hearing scheduled for July 20. Optasia and Nairtime’s business could depend on what happens in court on July 20. If the restraining order is lifted, Optasia’s operations could be disrupted again.
While Optasia and other operators still await further clarity, the FCCPC has already issued licenses to nine lenders, including Spain-founded Fonyou and ERL, signalling competition.
Optasia, for its part, has emphasised that Nairtime Nigeria is fully locally incorporated, locally staffed, and locally led, aiming to position itself ahead of any regulatory scrutiny about foreign control.
Optasia has access to over 860 million mobile subscribers across 38 countries. Nigeria is one of its most important markets. A court-dependent resumption is not the same as a resolved situation, and July 20 will determine whether Wednesday’s announcement was a genuine win or a reprieve.