OPay Limited has reported a significant surge in its lending business, with a 204 per cent increase in loan volume in the first half of 2026. This growth is part of the company's expansion plans in Nigeria, where loan origination reached $1.56 billion in the 12 months ended June 30, 2026. The fintech's rapid growth has attracted investment from Stanbic Africa Holdings Limited, a member of Standard Bank Group, which agreed to invest up to $200 million in OPay ahead of its proposed US initial public offering (IPO).
The investment from Stanbic Africa Holdings is subject to the completion of the offering and regulatory approvals. OPay's preliminary registration statement filed with the United States Securities and Exchange Commission (SEC) showed that its unique quarterly borrowers in Nigeria rose to 6.7 million in the second quarter of 2026. This represents a significant increase of over seven times the level recorded in the first quarter of 2024. The company's lending model focuses on individuals and small businesses, providing access to credit to support their financial and operational needs.
OPay's expansion of its lending operations has contributed to a sharp increase in earnings. Revenue rose to $467.06 million in the first half of 2026 from $197.48 million in the corresponding period of 2025. Net income also surged to $90.87 million from $21.71 million, while revenue from loan financing increased to $236.12 million from $88.15 million over the same period. The company's growth has been driven by its focus on providing responsible, data-driven credit to individuals and small businesses.
However, the rapid expansion of OPay's credit business has been accompanied by rising exposure to potential loan losses. The company's expected credit loss provisions climbed to $118.36 million in the first half of 2026 from $38.14 million a year earlier. OPay warned that its credit risk management practices could come under pressure as it expands lending to more borrowers and offers loans with longer repayment periods.
OPay also cautioned that its provisions might not be sufficient to cover future credit losses. The company stated that its credit risk management practices may not function as effectively as expected as it continues to expand its lending business to serve a broader borrower group with longer tenors. This risk is associated with the company's plans to grow its lending business.
Nigeria remains OPay's largest market, accounting for $417.61 million, or 89.5 per cent, of its revenue in the first half of 2026. The company processed 90.1 billion transactions, representing $558 billion in gross transaction value. OPay's growth in Nigeria has been driven by its focus on providing financial services to individuals and small businesses.
The company's proposed US IPO is expected to provide additional funding to support its growth plans. OPay's investment from Stanbic Africa Holdings will also help to support its expansion plans in Nigeria and other markets. The company's growth has been driven by its focus on providing financial services to underserved markets.
Key points
- OPay's loan origination volume in Nigeria reached $1.56 billion in the 12 months ended June 30, 2026.
- The company's unique quarterly borrowers in Nigeria rose to 6.7 million in the second quarter of 2026.
- Stanbic Africa Holdings agreed to invest up to $200 million in OPay ahead of its proposed US initial public offering (IPO).
