Nigerians, others borrowed N4.6trn airtime on credit in 2025

Mobile phone users in Nigeria and other emerging markets borrowed airtime worth about $3.18 billion (approximately N4.61 trillion) on credit in 2025, according to the latest financial statements released by fintech firm Optasia.

The figure represents a 12.3 per cent increase from the $2.83 billion recorded in 2024, highlighting the growing dependence of millions of mobile subscribers on airtime advances and other small-value digital loans.

Optasia disclosed that Africa remained its biggest market, accounting for more than 94 per cent of the total airtime credit disbursed. The continent recorded $2.99 billion in airtime advances in 2025, up from $2.53 billion the previous year.

The company said its technology platform works with telecom operators and financial institutions to assess subscribers’ behaviour, determine their creditworthiness and disburse airtime loans.

Beyond airtime advances, Optasia reported a sharp increase in nano-loans, with transactions rising to $2.30 billion in 2025 from $967.9 million in 2024. Africa accounted for $1.41 billion of the total nano-loan value.

The growth in digital lending boosted the company’s financial performance, with revenue rising by 75.5 per cent to $265.36 million, while profit after tax increased to $43.13 million from $36.23 million in 2024.

Optasia, which operates in more than 25 countries, identified Nigeria as one of its key markets. The company maintains two wholly owned Nigerian subsidiaries—Nairtime Nigeria Limited and Xtra MFS Nigeria Limited—and reported significant exposure to the Nigerian market through trade receivables and currency-related risks.

According to the financial statements, Nigeria accounted for $7.73 million in gross trade receivables at the end of 2025, more than double the previous year’s figure, indicating increased transaction activity in the country.

The report also noted that telecom-linked lending is becoming a major source of short-term financing for underbanked consumers, particularly in Africa, where mobile phone penetration far exceeds access to traditional banking services.

However, the rapid growth of digital lending has also increased credit risks. Optasia’s provision for expected credit losses rose to $65.21 million in 2025 from $33.42 million a year earlier.

Meanwhile, the company faces regulatory uncertainty in Nigeria amid efforts by the Federal Government to open the airtime credit market to more indigenous fintech firms and encourage greater competition in the sector.