Nigerians, others buy $3.1bn airtime on credit

Mobile phone subscribers in Nigeria and other emerging markets borrowed airtime worth $3.18bn on credit in 2025, with Africa accounting for more than 94 per cent of the total, according to the latest financial statements of fintech firm Optasia.

The company’s 2025 consolidated financial statements showed that airtime advances granted through telecom operators rose to $3.18bn last year from $2.83bn in 2024, reflecting a 12.3 per cent increase.

Optasia stated, “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 disclosed in the financial statements, the airtime advances amounted to about N4.61tn in 2025 in naira terms, up from approximately N4.38tn in 2024.

Despite the growth in dollar terms, the naira value rose by a slower pace as the exchange rate strengthened to N1,450.58/$ at the end of 2025 from N1,547.30/$ a year earlier.

The report showed that Africa remained the dominant market for the service, accounting for $2.99bn, or 94.2 per cent, of all airtime credit disbursed in 2025. This was up from $2.53bn recorded in 2024. Europe and Asia accounted for $96.1m, while the Middle East contributed $87.7m.

The figures highlight the growing dependence of millions of mobile users across Africa on small-value digital credit products, particularly in economies where access to formal financial services remains limited, and household purchasing power is under pressure.

Optasia, which provides airtime advances and nano-loan services through partnerships with mobile network operators and financial institutions, said its technology platform assesses subscribers’ behaviour and determines their eligibility for credit.

According to the company, the platform handles “scoring, financial decisioning and disbursements” by analysing subscribers’ credit history and other relevant data before determining the amount of advance that can be granted.

The report explained that the company also assumes part of the credit risk associated with the 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,” it stated.

Beyond airtime lending, the company recorded a sharp increase in nano-loan transactions during the year. Its Mobile Financial Services segment facilitated nano-loans worth $2.30bn in 2025, more than double the $967.9m recorded in the previous year.

Africa accounted for $1.41bn, representing 61.4 per cent of the total, while Europe and Asia contributed $888.9m. The company said the loans were provided through arrangements involving telecom operators and financial institutions, with its proprietary platform supporting credit scoring, approvals, disbursements and collections.

The growth in airtime lending and nano-loan transactions boosted the firm’s earnings during the year. Revenue rose by 75.5 per cent to $265.36m in 2025 from $151.19m in 2024. Mobile Financial Services contributed $167.53m to revenue, while airtime credit services generated $96.86m.

Africa remained the company’s biggest revenue source, contributing $234.81m, or 88.5 per cent of total revenue, compared with $121.31m in the previous year. Europe and Asia generated $25.43m, while the Middle East accounted for $5.12m.

Profit after tax increased to $43.13m from $36.23m in 2024, while total assets more than doubled to $302.17m from $141.79m.

The company described 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.”

According to the financial statements, Optasia operates across more than 25 countries, including Nigeria, South Africa, Ghana, Tunisia, Algeria, Zambia, Uganda, Rwanda, Ethiopia, Egypt, Benin, Côte d’Ivoire, Liberia, Lesotho, Mozambique, Pakistan, Bangladesh, Myanmar, Indonesia, Malaysia, Qatar, Brazil, Greece, Cyprus and the United Arab Emirates.

However, the report showed that Africa remained the dominant market for the firm, with operations in 16 African countries, including Nigeria, South Africa, Ghana, Egypt, Ethiopia, Algeria and Zambia.

The financial statements also showed that Optasia has a direct operating presence in Nigeria through two wholly owned subsidiaries, Nairtime Nigeria Limited and Xtra MFS Nigeria Limited.

Both entities are listed as Nigerian subsidiaries, with Optasia holding a 100 per cent beneficial ownership stake in each company. Nairtime Nigeria Limited was incorporated in 2012, while Xtra MFS Nigeria Limited was incorporated in 2019.

Although the company did not disclose separate revenue or profit for its Nigerian operations, the report suggests that Nigeria remains one of its more significant African markets. The report showed that Nigeria was material to Optasia’s foreign exchange exposure, with the Nigerian naira listed among the currencies that expose the group to currency risk.

Under its financial risk management note, the company stated that it was exposed to currency risk on revenues, expenses and intercompany transactions denominated in currencies outside its functional currency.

It listed the Nigerian naira alongside the euro, Congolese franc, Tanzanian shilling, South African rand, Zambian kwacha and Ghanaian cedi. As of December 31, 2025, Optasia reported total naira-denominated assets of N19.72bn and naira-denominated liabilities of N357.09m, leaving a net naira exposure of N19.37bn.

This was lower than the N25.03bn net naira exposure recorded in 2024, when naira-denominated assets stood at N25.11bn and liabilities at N81.01m. The decline means the group’s net naira exposure fell by N5.66bn, or 22.6 per cent, year-on-year.

However, the remaining N19.37bn exposure still makes Nigeria one of the company’s major currency-risk markets, meaning movements in the naira can affect the value of its earnings, assets and liabilities when translated into dollars.

Optasia also disclosed that a five per cent movement in the dollar against the naira would have affected equity by $668,000 in 2025, compared with $809,000 in 2024. This means the company’s sensitivity to naira movement reduced during the year, in line with the fall in its net naira exposure.

At the end of 2025, Nigeria accounted for $7.73m in gross trade receivables, more than double the $3.80m recorded a year earlier. The increase of 103.6 per cent was one of the strongest among the group’s disclosed markets, indicating a substantial rise in transaction activity and outstanding balances linked to Nigerian operations.