OPay’s Loan Book Surges 204% As Stanbic Moves To Invest $200m

OPay Limited has said its lending business recorded a 204 per cent in loan volume in the first half of 2026, as Stanbic Africa Holdings Limited, a member of Standard Bank Group, agreed to invest up to $200 million in the fintech ahead of its proposed US initial public offering (IPO).

The investment, which is subject to the completion of the offering and regulatory approvals, comes as OPay expands its credit operations in Nigeria, where loan origination reached $1.56 billion in the 12 months ended June 30, 2026.

The fintech’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, more than seven times the level recorded in the first quarter of 2024.

“Our loan origination volume in Nigeria reached US$1.56 billion during the last 12 months ending June 30, 2026, with loan volume growing 204 per cent during the first half of 2026 compared to the first half of 2025. We had 6.7 million total quarterly unique borrowers in Nigeria in the second quarter of 2026, which is more than seven times the number of unique borrowers we had in the first quarter of 2024.” It stated in the registration statement.

OPay said its lending model focuses on individuals and small businesses, providing access to credit to support their financial and operational needs. “We extend responsible, data-driven credit to individuals and small businesses, helping them manage liquidity, expand operations, and participate more fully in the digital economy,” the company stated in the prospectus.

The expansion of its lending operations contributed to a sharp increase in earnings, with revenue rising 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.

However, the rapid expansion of its credit business has been accompanied by rising exposure to potential loan losses. OPay’s expected credit loss provisions climbed to $118.36 million in the first half of 2026 from $38.14 million a year earlier.

The company 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. “There is a risk that our credit risk management practices may not function as effectively as expected as we continue to expand our lending business to serve a broader borrower group with longer tenors,” it stated.

OPay also cautioned that its provisions might not be sufficient to cover future credit losses. “As these factors are largely beyond our control and there is no infallible method for predicting credit losses, we cannot guarantee that our provisions for expected credit loss will be sufficient,” the prospectus added.

Nigeria remains the fintech’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, in the 12 months ended June 30, 2026. As of July 31, 2026, it had 50.1 million monthly active users and 26.8 million daily active users.

Stanbic Africa Holdings’ proposed investment is structured as a private placement alongside OPay’s planned US offering. The final investment could be below $200 million, depending on the terms outlined in the prospectus.

The proposed transaction and OPay’s wider expansion plans remain subject to regulatory approvals and the completion of the relevant agreements.