YAKUB ABDULRASHEED – OPay, one of Nigeria’s most widely used financial technology platforms, has filed a prospectus for a proposed initial public offering (IPO) in the United States while considering a secondary listing on the Nigerian Exchange (NGX), potentially opening the door for local investors to own shares in the company.
The proposed offering comes as the fintech records significant financial growth, generating $467.1 million in revenue in the first half of 2026, a 136% increase from $198 million in the corresponding period of 2025.
Its net income also climbed to $90.9 million from $21.7 million a year earlier.
However, the company’s growing dependence on lending, alongside rising expected credit losses, raises important questions about the sustainability of its earnings as it prepares for a potential public-market debut.
OPay’s Revenue Growth and Expanding Customer Base
OPay’s financial performance has strengthened considerably, reflecting the scale of its operations and growing demand for its digital financial services.
The company generated $536.3 million in revenue in 2025, compared with $205.7 million in 2024, according to the prospectus figures provided.
Its first-half 2026 revenue of $467.1 million further demonstrates the pace of its expansion, with Nigeria contributing 89.5% of the total.
The fintech’s customer base also highlights its market reach. As of July 2026, OPay had 50.1 million monthly active users and 26.8 million daily active users. Over the 12 months to June 2026, it processed 90.1 billion transactions, with a gross transaction value of $558 billion.
The transaction value represents the total amount of money processed through its platform, rather than revenue earned by the company. OPay operates primarily in Nigeria, with additional operations in Egypt, Indonesia and Pakistan.
Lending Becomes a Major Revenue Driver Amid Rising Credit Risks
Loan financing has emerged as one of OPay’s most significant sources of income, accounting for approximately 51% of its total revenue in the first half of 2026.
Revenue from the business rose from $71.5 million in 2024 to $260.3 million in 2025 before reaching $236.1 million in the first six months of 2026. The figures indicate that lending is playing an increasingly central role in the company’s growth and profitability.
However, the expansion has also coincided with a sharp increase in expected credit-loss provisions, which rose from $24.8 million in 2024 to $121.3 million in 2025 and reached $118.4 million in the first half of 2026.
These provisions represent estimated losses on loans that borrowers may not repay, rather than necessarily reflecting cash losses already incurred.
The figures underscore the importance of assessing the quality of OPay’s loan portfolio, repayment performance and ability to manage credit risks as its lending operations expand.
US IPO, Standard Bank Investment and Proposed NGX Listing
Although OPay has filed its IPO prospectus, the company has yet to disclose its final valuation, offer price or the number of American Depositary Shares it intends to offer.
The prospectus also outlines a proposed private placement involving Stanbic Africa Holdings, a subsidiary of Standard Bank Group, which has agreed to subscribe for shares subject to specified conditions.
The investment is capped at the lowest of $200 million, a regulatory-capital-linked amount and a limit tied to its potential ownership following the offering.
Separately, OPay disclosed that its board and shareholders had approved pursuing a secondary listing on the Nigerian Exchange after the US listing.
The proposed move remains conditional on market conditions, regulatory approvals and other requirements, with no confirmed timetable announced.
If completed, the Nigerian listing could provide local investors with an opportunity to purchase shares in the fintech through the domestic stock market.
What Could this Mean for Nigerian Investors
A potential NGX listing could broaden access to OPay’s ownership, allowing Nigerians to participate in the company’s financial performance rather than simply use its payment and financial services.
The move could also introduce another major business to a stock market seeking to attract more companies and deepen investment opportunities.
The prospect of a local listing follows the recent listing of Dangote Refinery, as referenced in the report, and could further strengthen interest in Nigeria’s equities market.
Nevertheless, prospective investors would need to consider more than OPay’s revenue growth and expanding customer base. Its final valuation, profitability, lending exposure and rising credit-loss provisions will be important factors in determining whether its shares represent an attractive investment.
Until the company publishes definitive offering terms and confirms the requirements and timetable for its proposed Nigerian listing, the opportunity remains prospective.
A successful listing could widen access to OPay’s growth, but it would not eliminate the financial risks associated with investing in the company.
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