OPay loan losses | SkyDNews News Desk  

ABUJA, Nigeria - OPay, one of Nigeria’s major digital financial services platforms, has reported a sharp increase in loan write-offs, with approximately $113.15 million in loans classified as uncollectible during the first half of 2026, according to its registration statement filed with the United States Securities and Exchange Commission (SEC).

The disclosure, reported by Nairametrics on October 13, 2026, has drawn attention to the growing risks associated with Nigeria’s rapidly expanding digital lending market.

At an illustrative exchange rate of ₦1,500 to the dollar, the reported write-offs are equivalent to approximately ₦170 billion, although the precise naira value depends on the applicable exchange rate.

The figures provide a clearer picture of the scale of credit risk facing OPay’s lending business. However, they do not establish that all the affected borrowers deliberately refused to repay their loans.

 

OPay loan losses: Loan write-offs rise sharply

 

OPay’s reported $113.15 million in loan write-offs for the six months ended June 30, 2026, represented a 520.5 per cent increase from the comparable period a year earlier. The amount also exceeded the $69.95 million in loans written off throughout 2025.

The company’s expected credit-loss expenses rose by 210.3 per cent to $118.36 million during the first half of 2026, representing 25.3 per cent of its total revenue for the period.

These figures indicate that credit losses have become a significant consideration as OPay expands its lending operations.

     

OPay loan losses: More borrowers, more lending risks

 

OPay’s financial disclosure also shows that its Nigerian loan disbursements increased substantially. New loans issued in Nigeria reached $927.63 million in the first half of 2026, compared with $305.12 million in the corresponding period of 2025.

 

The number of unique quarterly borrowers in Nigeria also increased from 3.5 million to 6.7 million.

While the expansion demonstrates the growing reach of digital credit, it also exposes the lender to greater risks when borrowers experience difficulties meeting their repayment obligations.

At June 30, 2026, OPay reported $113.80 million in overdue loans and interest, representing 27.4 per cent of the $415.33 million owed to the company.

Although the overdue share declined from 34.2 per cent at the end of December 2025, the absolute value of overdue loans increased from $93.71 million. This suggests that the growth of the overall loan portfolio has complicated the interpretation of repayment performance.

Did borrowers deliberately refuse to repay?

 

The claim circulating online that OPay lost approximately ₦150 billion because Nigerians refused to repay their loans requires careful qualification.

A loan write-off does not, by itself, establish deliberate default. Borrowers may fail to meet repayment obligations because of lost income, business difficulties, multiple outstanding debts or other financial pressures. Some may also deliberately evade repayment.

OPay’s disclosed figures do not establish the proportion of defaults attributable to each cause.

A responsible assessment must therefore distinguish between documented financial losses and claims about borrowers’ motives.

       

OPay remains profitable despite rising credit costs

Despite the increase in credit-loss expenses, OPay reported revenue of $467.06 million for the first half of 2026 and profit after tax of $90.87 million.

Lending income reached $236.12 million, accounting for just over half of total revenue and exceeding the $130.55 million generated from payment-related services.

The results suggest that OPay’s growing lending business remains a major revenue source, even as the company faces increasing exposure to loans that may not be repaid.

The central question is whether the company can maintain its growth while strengthening credit assessment, responsible lending and debt recovery practices.

   

Implications for Nigeria’s digital lending market

 

The disclosure raises broader questions about the sustainability of app-based lending in Nigeria, where digital platforms have expanded access to short-term credit.

For lenders, the challenge is to assess borrowers’ repayment capacity accurately, monitor loan performance and avoid extending credit beyond what customers can reasonably repay.

For borrowers, the figures reinforce the importance of understanding loan charges, repayment deadlines and the consequences of default before accepting digital credit.

For regulators, effective oversight must balance access to credit with transparent lending practices, responsible debt collection and appropriate consumer protection.

     

Conclusion

 

OPay’s financial disclosure confirms substantial loan write-offs and rising expected credit losses in the first half of 2026. However, the assertion that Nigerians collectively refused to repay approximately ₦150 billion goes beyond what the disclosed figures establish.

The more defensible conclusion is that OPay is experiencing significant credit losses amid rapid lending growth, making repayment performance and responsible credit management important issues for the company and Nigeria’s wider digital finance industry.

  Sources:   OPay Limited’s Form F-1 registration statement filed with the US Securities and Exchange Commission on October 9, 2026; Nairametrics, October 13, 2026.