MTN Nigeria’s fintech revenue slumps after airtime lending pause

MTN Nigeria’s fintech business posted one of its weakest performances in recent years after the telecom operator temporarily suspended its airtime and data credit service, underscoring how much one product had come to underpin the division’s growth.

Fintech revenue fell 72.4% year-on-year to ₦12.99 billion ($9.50 million) in the second quarter of 2026. The sharp decline pulled first-half fintech revenue down 7.2% to ₦77.2 billion ($56.49 million), making it one of the few weak spots in an otherwise strong earnings report that saw the telecom operator’s profit after tax jump 70.6% to ₦707.54 billion ($517.69 million), according to the company’s first-half 2026 financial statements.

The decline followed the temporary suspension of MTN’s airtime and data credit advance service, Xtratime, on April 16 as the company implemented processes required under Nigeria’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new licencing and compliance framework for digital lenders.

The results underscore how dependent MTN Nigeria’s fintech business has become on its airtime and data credit service. While its mobile money business continued to attract new users, the suspension of a single product was enough to push the entire fintech division into decline.

The timing is significant as MTN Nigeria works to separate its fintech business, a transaction investors have closely watched as a key step toward unlocking the unit’s value. The telco said it has since resumed the service and expects fintech performance to recover in the second half of the year.

“With operations now recommenced, we expect activity levels to progressively ramp up through H2, supporting a stronger contribution from our fintech business over the remainder of the year,” Karl Toriola, MTN Nigeria’s chief executive officer, said.

Despite the decline in reported fintech revenue, the company’s underlying mobile money business continued to expand. Mobile money revenue grew by approximately 132%, while active MoMo wallets increased by 1.3 million to 5 million during the period, suggesting that customer adoption continued even as lending activity slowed.

MTN Nigeria also said it is progressing with the structural separation of its fintech business following shareholder approval, although the transaction remains subject to regulatory approvals.

“We also continue to progress the structural separation of the fintech business following shareholder approval, subject to regulatory approvals. Once completed, the transaction is expected to improve balance sheet flexibility, reduce future funding obligations and allow MTN Nigeria to retain meaningful exposure to long-term fintech growth,” the telco said.

In April, shareholders approved a restructuring that will move MoMo Payment Service Bank Limited and Y’ello Digital Financial Services Limited into a new holding structure backed by MTN Group.

Under the proposed arrangement, MTN Group, through its fintech investment arm, will inject ₦152.06 billion ($110.54 million) for a 60% stake in the fintech businesses, while MTN Nigeria will retain the remaining 40%. Both parties will consolidate their interests under a new Central Bank of Nigeria-regulated holding company. In June, MTN said it was awaiting regulatory approval to complete the separation.

Outside fintech, MTN delivered one of its strongest half-year performances on record. Total revenue rose 25.9% to ₦2.99 trillion ($2.19 billion), driven by strong growth in data services, which increased 38.39%, while voice revenue grew 11.99%. The telecom operator ended the period with 92.2 million subscribers, 55.7 million active data users, and declared an interim dividend of ₦26 per share.

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