Airtime borrowing hits record N4.6tn across Africa

Millions of mobile phone users across Africa borrowed airtime worth about N4.6 trillion ($3.18 billion) in 2025 as rising living costs and limited access to formal credit pushed more people to rely on telecom-based lending services.

This is according to the latest financial statements released by fintech company Optasia, a major provider of airtime credit and nano-loan services across emerging markets.

The report showed that airtime advances granted through mobile network operators increased by 12.3 percent to $3.18 billion in 2025 from $2.83 billion in 2024.

Africa accounted for $2.99 billion, representing more than 94 percent of all airtime credit disbursed globally by the company during the year. Europe and Asia accounted for $96.1 million, while the Middle East contributed $87.7 million.

Read also:  Airtime lending: Monopoly disputed as fresh questions emerge over ownership of 9 operators

The figures highlight how millions of Africans are increasingly turning to airtime borrowing to stay connected amid growing economic pressure.

Airtime credit, once considered an occasional convenience, is becoming an essential financial tool for many consumers who struggle to maintain regular spending on communication services.

The growth comes at a time when many African countries continue to face high inflation, currency pressures and declining household purchasing power.

For many subscribers, borrowing airtime has become a quick solution when cash is unavailable, allowing them to make calls, access mobile data and carry out digital transactions until they can recharge their accounts.

Optasia, which operates in more than 25 countries including Nigeria, South Africa, Ghana, Egypt and Ethiopia, uses technology platforms that analyse subscriber behaviour and determine eligibility for airtime advances and small loans.

The company said its platform performs credit scoring, financial decision-making and disbursement functions before approving the amount of airtime credit that can be granted to a subscriber.

Beyond airtime advances, the company recorded strong growth in nano-loans, which are small digital loans often provided through mobile phones.

Its Mobile Financial Services segment facilitated nano-loans worth $2.30 billion in 2025, more than double the $967.9 million recorded in 2024.

Africa contributed $1.41 billion of the total, reinforcing the continent’s position as the largest market for digital micro-credit products.

The surge in borrowing helped boost Optasia’s financial performance. Revenue rose by 75.5 percent to $265.36 million in 2025 from $151.19 million a year earlier, while profit after tax increased to $43.13 million.

Africa remained the company’s biggest revenue source, contributing nearly 89 percent of total earnings.

The report suggests that telecom-linked lending is becoming one of the fastest-growing segments of Africa’s digital economy.

Unlike traditional bank loans, airtime credit and nano-loans are available instantly through mobile phones, making them attractive to people who may not qualify for conventional banking services.

Experts note that mobile penetration across Africa is significantly higher than banking penetration, creating opportunities for telecom operators and fintech companies to provide financial services through mobile networks.

In Nigeria, where millions of people remain outside the formal banking system, airtime and data borrowing services have become increasingly popular.

Optasia operates in Nigeria through its subsidiaries, Nairtime Nigeria Limited and Xtra MFS Nigeria Limited, both wholly owned by the group.

The company disclosed that Nigeria remains one of its most important African markets. Its Nigerian operations generated significant transaction activity, with gross trade receivables more than doubling to $7.73 million in 2025 from $3.80 million in the previous year.

However, the rapid growth of airtime lending is also creating new risks.

Optasia’s provision for expected credit losses on financial guarantee contracts rose sharply to $65.21 million in 2025 from $33.42 million in 2024, reflecting increased exposure to customers who may be unable to repay borrowed airtime and nano-loans.

This suggests that while demand for digital credit remains strong, the sector is also facing rising default risks as more consumers depend on short-term borrowing.

Read also: FCCPC airtime credit enforcement tests Tinubu’s vision for strong institutions

The report comes amid ongoing debates in Nigeria over the future of the airtime credit market.

The federal government has been considering measures aimed at opening the sector to more indigenous fintech companies, ending what some stakeholders describe as years of dominance by a few players.

Although regulatory uncertainty briefly disrupted airtime credit services earlier this year, services have since resumed across major telecom networks.

The latest figures demonstrate that airtime borrowing has evolved beyond a telecom service and is increasingly functioning as a form of micro-finance for millions of Africans.

As economic pressures persist across the continent, demand for small-ticket digital credit products is expected to remain strong, further deepening the role of telecom operators and fintech firms in Africa’s financial inclusion journey.