You now have more options to borrow airtime as FG opens airtime borrowing business to more companies

• The Federal Government has deregulated Nigeria's airtime credit market.

• The move ends a long-running exclusive arrangement involving a foreign technology firm.

• More companies, including Nigerian fintech firms, are expected to enter the market.

• The government says the reform will boost competition, innovation, and local participation.

The Federal Government has approved the deregulation of Nigeria's airtime credit market, a move expected to open the sector to more companies and end a long-standing arrangement that allowed a single foreign technology firm to dominate airtime borrowing services across major telecom networks.

The decision is part of efforts to increase competition, encourage local participation, and reduce capital flight from one of Nigeria's most widely used digital services.

For years, millions of mobile subscribers have relied on airtime and data borrowing services offered by telecommunications companies whenever they ran out of credit. However, the backend technology powering much of the service was reportedly controlled through an exclusive partnership involving a foreign technology company.

With the new directive, the government is opening the market to more operators, particularly Nigerian fintech firms, allowing them to participate in airtime and data credit services.

Reports indicate that the reform was approved by President Bola Tinubu following concerns that the previous arrangement limited competition and prevented more local companies from participating in the growing telecom credit sector.

The Federal Competition and Consumer Protection Commission (FCCPC) reportedly argued that opening up the market would create opportunities for indigenous businesses, boost innovation, and keep more revenue within the Nigerian economy.

Officials believe the move could also encourage the development of new products and services for mobile subscribers, while creating jobs and attracting investment into the country's digital economy.

The development comes amid ongoing debates over the regulation of airtime and data lending services. In recent months, disagreements between regulators, telecom operators, and industry stakeholders have raised questions about who should oversee the rapidly growing sector.

Despite the regulatory disputes, the government maintains that the reform is aimed at creating a more competitive market that benefits consumers and supports local businesses.

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For mobile subscribers, the immediate impact may not be visible, but industry observers say the opening of the market could eventually lead to more choices, improved services, and increased innovation in airtime and data borrowing products.

The government also hopes the policy will reduce the amount of money leaving the country through foreign-controlled arrangements and strengthen Nigeria's digital economy.