MTN targets Nigeria's lending market as it seeks fintech licences

In a packed auditorium at MTN's capital market event on Wednesday, Serigne Dioum, the telco's Fintech CEO, laid out the company's ambitious plans to expand into lending across key African markets, including Nigeria. With Africa's biggest telco seeking regulatory approvals to offer a broader suite of financial services, MTN is poised to capture a larger share of the underserved credit market. The challenge is daunting: nearly 80% of Nigerian Micro, Small, and Medium Enterprises (MSMEs) lack access to formal credit, according to a 2025 report by the National Credit Guarantee Company (NCGC). This staggering figure underscores the vast market that traditional financial institutions have largely left untapped.

A Stears report estimates that the sector faces a $236 billion funding gap, a figure that highlights the enormity of the challenge. For MTN, lending represents the next major growth frontier. The company already facilitates access to credit through partnerships in several markets, with more than one million people accessing loans through MTN's platforms every day. These loans are used to finance small businesses, purchase inventory, or cover urgent expenses such as healthcare costs.

Nigeria sits at the heart of MTN's expansion plans, with the company pursuing additional licences in the country to deepen its financial services offerings. MTN Group CEO Ralph Mupita declined to disclose the specific licences being sought, but emphasized the company's ambition to offer a broader suite of financial products and services to customers. "We are pursuing additional licences that will allow us to offer a broader suite of financial products and services to customers," Mupita said. Nigeria is a key market in this regard, but the opportunity extends across several of our markets.

MTN's fintech business has become one of the group's fastest-growing divisions, generating approximately $2.8 billion in revenue in 2025. The company processed more than $500 billion in transaction value and handled over 23 billion transactions across its markets. With a network of more than 70 million active MoMo users, over 2 million merchants, and an agent network of more than 1.4 million people across Africa, MTN is well-positioned to capitalize on the growing demand for financial services.

For MTN, the leap into lending is a significant milestone in the company's expansion plans. With regulatory approvals in place, the telco is poised to offer a broader suite of financial services, including direct lending to customers. The move comes as MTN continues to build out its fintech business, driven by the growing demand for financial services in Africa's underserved credit market.

As I reflect on MTN's plans to expand into lending, I am struck by the enormity of the opportunity. With a $236 billion funding gap in Nigeria alone, the potential for growth is vast. MTN's entry into lending marks a significant milestone in the company's expansion plans, and I predict that we will see significant growth in the fintech business in the coming years.