MTN Moves Beyond Telecom Into Lending
MTN is preparing to expand its financial services business across Africa, with Nigeria positioned as one of its biggest growth markets.
The telecom giant plans to move beyond facilitating loans and begin lending directly to customers. To achieve this, MTN is seeking new regulatory approvals in several African countries.
The move comes shortly after the company unveiled its new TV streaming platform as part of its broader digital expansion strategy.
Fintech Division Eyes Direct Lending
Speaking during MTN Group’s Capital Markets Day, MTN Group Fintech CEO, Serigne Dioum, said the company sees lending as a major opportunity.
According to him, MTN has already helped increase access to credit through partnerships. However, the company now wants greater control over the lending process.
“We want to move further up the lending value chain,” Dioum said. “Where appropriate, we will seek licences that allow us to lend directly to customers.”
Nigeria’s Credit Gap Creates Opportunity
MTN’s expansion comes at a time when many Nigerians struggle to access formal credit.
A 2025 report by the National Credit Guarantee Company revealed that nearly 80% of Micro, Small and Medium Enterprises (MSMEs) lack access to formal loans.
Research by Stears also estimated Nigeria’s MSME funding gap at about $236 billion.
Across Africa, the situation remains similar. Dioum noted that only about 4% to 5% of adults currently have access to formal credit.
This leaves millions of consumers and businesses underserved by traditional financial institutions.
Nigeria Becomes Strategic Market
MTN Group CEO Ralph Mupita confirmed that Nigeria remains central to the company’s fintech growth plans.
He disclosed that MTN is pursuing additional licences in Nigeria and other African countries. However, he did not reveal the specific approvals being sought.
“Nigeria is a key market in this regard,” Mupita said. “The opportunity also extends across several of our markets.”
The company aims to leverage its telecom network, mobile money platform, and large customer base to drive financial inclusion.
Fintech Business Records Strong Growth
MTN’s fintech division has become one of its fastest-growing businesses.
The company reported revenue of approximately $2.8 billion in 2025.
During the same period, MTN processed over $500 billion in transaction value and handled more than 23 billion transactions.
The fintech arm now serves over 70 million active MoMo users across Africa.
It also works with more than 2 million merchants and operates through an agent network exceeding 1.4 million people.
According to Dioum, more than one million customers access loans daily through MTN-linked platforms.
Many use the funds to support businesses, restock inventory, or cover urgent expenses.
Awaiting Regulatory Approvals
In Nigeria, MTN continues to strengthen its fintech operations through MoMo PSB.
In November 2024, the company applied for Payment Solution Service Provider (PSSP) and Payment Terminal Service Provider (PTSP) licences.
The applications form part of efforts to deepen digital payment services and reduce reliance on third-party processors.
MTN is also awaiting approval from the Central Bank of Nigeria (CBN) for the structural separation of its fintech business.
Mupita described the process as important for future growth.
“These separations are complex,” he said. “Regulators are carefully assessing the structure.”
Payments and Lending Drive Future Growth
MTN believes Africa’s fintech sector still holds enormous potential.
The company expects payments, remittances, and lending services to fuel the next phase of growth as more consumers embrace digital transactions.
By expanding into direct lending, MTN hopes to strengthen customer relationships while unlocking new revenue opportunities across its markets.
MTN Approves New Board Remuneration
In a related development, MTN Nigeria shareholders recently approved a new remuneration package for board members.
Under the approved structure, Chairman Ernest Ndukwe will earn N167.98 million for the 2026 financial year.
Other non-executive directors will receive N108.37 million each for the year ending December 31, 2026.
