Airtime credit hits ₦4.6tn as millions of Nigerians borrow to stay connected

• Mobile users across emerging markets borrowed $3.18 billion (about ₦4.61 trillion) in airtime credit in 2025, with Africa accounting for more than 94% of the total.

• Optasia's nano-loan business also expanded rapidly, with loan disbursements more than doubling to $2.3 billion as more consumers relied on small digital loans.

• Nigeria remains one of Optasia's key markets, even as the company faces regulatory uncertainty over plans to open the country's airtime credit sector to more local fintech firms.

Mobile phone users in Nigeria and other emerging markets borrowed airtime worth about $3.18bn (₦4.61tn) on credit in 2025, highlighting the growing reliance on telecom-based lending services across Africa.

This was disclosed in the 2025 consolidated financial statements of fintech company Optasia, which partners with telecom operators to provide airtime advances and nano-loans to subscribers.

According to the report, airtime credit issued through telecom operators rose by 12.3 per cent from $2.83bn in 2024 to $3.18bn in 2025.

Optasia said, “Airtime credit services represent service fees charged on airtime credit amounting to $3,176.34m (2024: $2,829.2m) granted to subscribers of the telecom operators during the year.”

Using the exchange rates contained in the financial statements, the airtime advances translated to roughly ₦4.61tn in 2025, compared to about ₦4.38tn a year earlier.

Africa remained the biggest market for the service, accounting for $2.99bn, or 94.2 per cent, of all airtime credit issued during the year. The figure was significantly higher than the $2.53bn recorded in 2024.

Europe and Asia contributed $96.1m, while the Middle East accounted for $87.7m.

The figures underline how millions of consumers across Africa increasingly depend on small-value digital credit products to stay connected, especially in countries where access to formal banking remains limited and rising living costs continue to squeeze household budgets.

Beyond airtime advances, Optasia reported strong growth in nano-loan transactions.

The company’s Mobile Financial Services division facilitated nano-loans worth $2.30bn in 2025, more than double the $967.9m recorded the previous year.

Africa accounted for $1.41bn of the total loan value, representing 61.4 per cent, while Europe and Asia contributed $888.9m.

Optasia said its technology platform helps telecom operators and financial institutions assess customer eligibility for credit through behavioural analysis and credit scoring.

According to the company, the platform handles “scoring, financial decisioning and disbursements” by analysing subscribers’ credit histories and other relevant data before determining how much credit can be granted.

The company also revealed that it shares some of the risks associated with the lending service.

“As part of the airtime credit service, the Group also commits to indemnify the MNO for the amount of advance so granted, in case the subscriber fails to pay the same within a specified period of time from the date of grant of advance,” the report stated.

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The rapid expansion of airtime lending and nano-loan services boosted Optasia’s financial performance during the year.

Revenue rose by 75.5 per cent to $265.36m in 2025, up from $151.19m in 2024.

Mobile Financial Services generated $167.53m in revenue, while airtime credit services contributed $96.86m.

Africa remained the company’s largest revenue source, contributing $234.81m, equivalent to 88.5 per cent of total revenue.

Profit after tax increased to $43.13m from $36.23m, while total assets more than doubled to $302.17m from $141.79m.

Optasia describes itself as “an analytics technology services provider in the fintech sector offering its services to large mobile telecom operators to provide airtime/data credit, micro- and nano-cash loans to underbanked populations in the emerging markets.”

The company operates in more than 25 countries, including Nigeria, South Africa, Ghana, Egypt, Ethiopia, Algeria, Pakistan, Bangladesh, Indonesia, Qatar, Brazil, Greece and the United Arab Emirates.

The financial statements show that Nigeria continues to be one of Optasia’s most important African markets.

The company operates locally through two wholly owned subsidiaries — Nairtime Nigeria Limited and Xtra MFS Nigeria Limited.

While Optasia did not break down revenue generated specifically from Nigeria, the report indicated that the country remains material to its business operations and foreign exchange exposure.

As of December 31, 2025, the company held ₦19.72bn in naira-denominated assets and ₦357.09m in naira liabilities, leaving a net naira exposure of ₦19.37bn.

The company noted that fluctuations in the naira could affect the value of its earnings, assets and liabilities when converted into dollars.

Nigeria also recorded one of the strongest increases in trade receivables among Optasia’s markets. Gross trade receivables linked to Nigerian operations rose by 103.6 per cent to $7.73m in 2025, compared with $3.80m in 2024, suggesting a sharp rise in transaction activity.

The company further disclosed that it maintains local credit facilities in Nigeria, including an invoice discounting facility and a cash-backed term loan facility, both carrying interest rates of 30 per cent per annum. However, neither facility had been utilised as of the end of 2025.

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The growth in digital lending has also increased credit risk exposure.

Optasia’s provision for expected credit losses on financial guarantee contracts climbed to $65.21m in 2025 from $33.42m a year earlier.

Despite the increase in risk provisions, the company said demand for airtime advances and nano-loans remained strong across its markets.

Industry analysts say telecom-linked lending is becoming an increasingly important source of short-term financing in Africa, where mobile phone penetration is significantly higher than access to traditional banking services.

The report comes as Nigeria’s airtime credit market faces increasing regulatory scrutiny.

Recent reports claimed that the Presidency supported efforts to open the airtime credit and data advance market to more indigenous fintech firms, potentially challenging Optasia’s long-standing dominance in the sector.

The reports alleged that the Federal Competition and Consumer Protection Commission (FCCPC) backed plans aimed at increasing competition, promoting local content and reducing capital flight.

However, the FCCPC has publicly distanced itself from claims that it recommended new operators or submitted a list of approved fintech companies to the Presidency.

“The commission wishes to state clearly that it is not aware of, and was not involved in, the claims attributed to it in the report absolutely,” FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said.

The commission also noted that implementation of the Digital, Electronic, Online, or Non-traditional (DEON) Consumer Lending Regulations 2025 remains suspended following an interim injunction granted by the Federal High Court in Lagos.

The dispute began earlier this year after MTN, Airtel, Glo and T2mobile temporarily suspended airtime credit services following regulatory directives linked to the DEON framework.

Although services have since resumed across major telecom networks, questions remain over the future regulatory structure of Nigeria’s growing airtime lending market and the role indigenous fintech firms may play in it.