MTN Nigeria's fintech revenue slumps after airtime lending pause

MTN Nigeria's Karl Toriola stood at the helm of the company's fintech division, steering it through turbulent waters. The telecom operator's fintech business had been a roaring success, with its airtime and data credit service, Xtratime, propelling growth that seemed almost unstoppable. But on April 16, Toriola issued a directive to temporarily suspend Xtratime, in compliance with Nigeria's Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025. Little did he know that this move would send shockwaves through the fintech division, sending revenue plummeting.

Fintech revenue for MTN Nigeria fell 72.4% year-on-year to ₦12.99 billion ($9.50 million) in the second quarter of 2026. This decline was a stark deviation from the norm, as the telecom operator's fintech business had become increasingly dependent on Xtratime. The sharp drop in revenue 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.

While the fintech division struggled, MTN Nigeria's mobile money business continued to attract new users. Mobile money revenue grew by approximately 132%, while active MoMo wallets increased by 1.3 million to 5 million during the period. This showed that customer adoption continued even as lending activity slowed, evidence of the resilience of MTN Nigeria's mobile money business.

The timing of the Xtratime suspension is significant, as MTN Nigeria works to separate its fintech business. Investors have been closely watching this transaction, which is seen as a key step toward unlocking the unit's value. The telco 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," Toriola said in a statement.

As MTN Nigeria works to recover from the fintech revenue slump, the company is progressing with the structural separation of its fintech business, following shareholder approval. The transaction remains subject to regulatory approvals, but if completed, it is expected to improve the company's balance sheet flexibility. With the fintech division expected to recover in the second half of the year, MTN Nigeria is poised to continue its growth trajectory, but the road ahead is fraught with regulatory challenges.

• Fintech revenue fell 72.4% year-on-year to ₦12.99 billion ($9.50 million) in the second quarter of 2026.
• First-half fintech revenue fell 7.2% to ₦77.2 billion ($56.49 million).
• Mobile money revenue grew by approximately 132%.
• Active MoMo wallets increased by 1.3 million to 5 million during the period.

As I reflect on this story, it's clear that MTN Nigeria's fintech business has become increasingly dependent on Xtratime. The temporary suspension of this service disrupted the fintech division, but the company is expected to recover in the second half of the year. The regulatory challenges ahead will undoubtedly test MTN Nigeria's resolve, but the company's growth trajectory remains promising.