OPay’s $1.28 lending problem in Nigeria
Every $10 (₦13,329.7) borrowed from OPay generated $2.55 (₦3,399.07) in loan-financing revenue in H1 2026. The figure includes late-payment penalties, not just interest, and offers a glimpse into the revenue lenders need to cover the risk of borrower defaults.
In H1 2026, OPay generated $2.55 (₦3,399.07) in loan-financing revenue for every $10 ($13,329.7) borrowed in Nigeria. This figure includes late-payment penalties and provides insight into the revenue lenders need to cover borrower default risks. OPay originated $927.6 million in loans, generating $236.12 million in loan-financing revenue.
However, the company set aside $118.36 million, equivalent to $1.28 (₦1,706.20) for every $10 lent, to cover expected credit losses. After provisions, $1.27 (₦1,692.87) remained from every $10 lent. Loan-financing revenue accounted for 25.5% of originations, below the Central Bank of Nigeria's 26.5% benchmark. OPay's loan interface displays varying interest rates depending on repayment periods: 0% for 15 days, 18.3% for 30 days, and 16.8% for 60 days.
The company classifies loans as non-performing after 90 days past due, charging them off at 120 days. As of June 30, 2026, OPay reported an NPL ratio of 4.3%, below the 5% prudential threshold but higher than banks' 8.03% NPL ratio.
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