Every $10 (₦13,329.7) borrowed from OPay generated $2.55 (₦3,399.07) in loan-financing income in H1 2026. The determine consists of late-payment penalties, not simply curiosity, and presents a glimpse into the income lenders have to cowl the danger of borrower defaults.
The fintech generated $236.12 million from $927.6 million in loans originated in Nigeria, in accordance with its public providing prospectus. But OPay put aside $118.36 million for anticipated credit score losses, equal to $1.28 (₦1,706.20) for each $10 lent. After provisions, roughly $1.27 (₦1,692.87) remained from each $10 lent.
Loan-financing income was equal to 25.5% of originations, in opposition to the Central Bank of Nigeria’s 26.5% benchmark rate of interest throughout the interval. OPay’s determine will not be the rate of interest charged to particular person debtors, as income consists of accrued curiosity and penalties for late repayments.
On a ₦280,000 ($210.06) mortgage via the OPay app, TechCabal was provided 0% curiosity for a 15-day reimbursement interval, 18.3% for 30 days, and 16.8% for 60 days. The charges apply to your complete reimbursement interval, not yearly.
The fintech’s determine presents a glimpse into the economics of digital credit score in Nigeria’s shopper lending market, estimated to be value $2.1 billion. Lenders should value loans to cowl defaults, funding and working prices, with debtors who repay on time probably bearing a part of the price of lending to those that don’t.
The firm classifies loans which are 90 days late as non-performing and costs them off at 120 days late. Recoveries on beforehand written-off loans cut back credit-loss expense.
Nigeria’s typical banking framework classifies loans as non-performing after 90 days late, uncertain after 180 days, and as losses after 360 days. OPay reported an NPL ratio of 4.3% as of June 30, 2026, in contrast with 8.03% for the banking trade, above the prudential threshold of 5%.
But OPay’s 120-day charge-off coverage complicates comparisons with banks that classify loans as losses after 360 days. Loans OPay writes off may stay on a financial institution’s books for an additional eight months, probably making OPay’s NPL ratio seem decrease. The firm doesn’t disclose the worth of loans charged off between these thresholds, making it not possible to estimate what its ratio can be underneath a 360-day timeline.
The economics of OPay’s lending
Lending is OPay’s largest income stream, producing 55.29% extra income than its next-largest enterprise. But anticipated credit score losses are rising sooner than lending income.
In H1 2026, it originated $927.6 million in loans, greater than 3 times the $305.1 million it originated a 12 months earlier. Loan-financing income grew 167.9% year-on-year to $236.12 million, whereas provisions for anticipated credit score losses elevated by 210.3%.
Provisions consumed 50.2% of loan-financing income in H1 2026, up from 41.0% a 12 months earlier. For each $10 OPay earned from lending, it put aside $5.02 to cowl anticipated credit score losses, leaving much less income to cowl different prices. The fintech is betting that an rising shift in the direction of service provider loans will cut back its credit score threat profile over time.
Illustrative Lending Revenue ()
Provision (50.1%)
Remaining (49.9%)
Illustrative Lending Revenue
$2.55
Expected Credit-Loss Provisions
-$1.28
Revenue Remaining (earlier than different prices)
$1.27
On a hypothetical $10.00 mortgage origination, the illustrative lending income is $2.55. OPay information $1.28 in anticipated credit-loss provisions, leaving $1.27 in income remaining earlier than funding, working, taxes, and different prices.
OPay units rates of interest primarily based on debtors’ profiles and threat assessments. Its loan-financing income includes curiosity accrued over the mortgage time period utilizing the efficient curiosity technique, alongside penalties for late instalment funds. Provisions, nevertheless, are estimates of anticipated losses, not the ultimate quantity the corporate will fail to get better. Actual losses will rely on defaults, subsequent recoveries, and adjustments in these estimates.
OPay has a considerable pool of money to fund its lending. As of June 30, 2026, it held $918.7 million in money, money equivalents, and short-term investments. “As of June 30, 2026, we did not have credit facilities provided by financial institutions,” the corporate mentioned in its prospectus.
OPay expects the proceeds from its public providing and concurrent personal placement, along with current money and anticipated working money flows, to cowl its money wants for the subsequent 12 months.
OPay’s artwork of lending
OPay’s loans sometimes final round 100 days. The firm makes use of transaction information to evaluate debtors who could lack typical credit score information. In 2025, fintech unicorn Moniepoint disbursed ₦1 trillion ($750.20 million) in loans utilizing transaction information.
OPay mentioned its month-to-month lively customers made a median of 209 pockets funds a month. It has leveraged greater than 200 billion credit score and monetary information factors and practically 50 billion behavioural information factors to evaluate debtors, combining transaction histories with credit score information, revenue information and third-party sources.
The firm runs greater than 5,000 machine-learning fashions and variants to evaluate creditworthiness, set mortgage limits, value loans and monitor delinquency. Its fashions draw on machine intelligence, transaction patterns, social graphs and user-consented monetary SMS information. AI instruments additionally assist collections: WhatsApp reminders improved restoration charges by 3.5% in Indonesia, with rollout to Nigeria underway. OPay warns that poor information, altering borrower behaviour, fraud and mannequin drift can weaken its predictions and enhance credit score losses.
The technique is scaling. OPay originated $1.56 billion in loans in Nigeria in the 12 months to June 30, 2026, and quarterly distinctive debtors reached 6.7 million in Q2 2026, greater than seven occasions the quantity in Q1 2024.
Loan financing accounted for 50.55% of OPay’s $467.06 million in complete revenue in H1 2026. The firm additionally reported $90.87 million in working revenue.
OPay’s lending enterprise stays small relative to established Nigerian banks. Guaranty Trust Holding Company (GTCO), as an illustration, reported a mortgage e-book of ₦3.14 trillion ($2.36 billion) in 2025. The figures usually are not instantly comparable: the 2 companies function at totally different scales, and their lending fashions differ
OPay can also be increasing into new lending merchandise. It launched a purchase now, pay later (BNPL) product in September 2025 and disbursed $99 million in service provider loans and $5 million via the BNPL product. Merchant lending may assist OPay handle credit score threat as a result of common enterprise transactions present observable indicators of reimbursement capability.
But as OPay expands its lending enterprise, it should additionally deal with the advertising ways used to draw and get better loans. Selling and advertising bills rose 104.67% to $78.68 million in H1 2026. A TechCabal report in April 2026 recognized OPay, EaseMoni, and OKash (each tied to OPay) as main sources of complaints about harassment from digital lenders, together with persistent calls.
OPay reported a buyer acquisition price (CAC) of $1.90 in H1 2026, with common month-to-month income per person at $1.70 in Q2 2026.
In its prospectus, OPay says it limits advertising contact to twice every week and presents distressed debtors counselling, cost deferrals and penalty or curiosity waivers.
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