MTN Nigeria’s Fintech Revenue Crashes 72% After Airtime Lending Suspension
Quick Reads
- Fintech revenue: Down 72.4% YoY in Q2 2026 to ₦12.99 billion (~$9.50 million)
- H1 fintech revenue: Down 7.2% to ₦77.2 billion (~$56.49 million)
- Group profit after tax: Up 70.6% to ₦707.54 billion (~$517.69 million)
- Total revenue: Up 25.9% to ₦2.99 trillion (~$2.19 billion), led by 38.39% growth in data
- Mobile money revenue: Up roughly 132%, with active MoMo wallets up 1.3 million to 5 million
- Cause: Xtratime, MTN’s airtime/data credit advance product, was suspended April 16, 2026, to meet requirements under Nigeria’s new Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025
- Outlook: Service has resumed; MTN expects a stronger fintech contribution in H2
- Bigger picture: MTN is still pushing ahead with spinning off its fintech arm into a new CBN-regulated holding company, with MTN Group taking a 60% stake
MTN Nigeria’s fintech business took an outsized hit in the second quarter of 2026 after the telecom operator paused Xtratime, its airtime and data credit lending service, a single product whose absence was enough to tip the entire division into decline, even as its underlying mobile money business kept growing.
According to the company’s H1 2026 financial statements, fintech revenue fell 72.4% year-on-year to ₦12.99 billion in Q2, pulling first-half fintech revenue down 7.2% to ₦77.2 billion. That stood out as one of the few weak points in an earnings report that was otherwise strong: group profit after tax jumped 70.6% to ₦707.54 billion for the half.
The slump traces back to April 16, when MTN suspended Xtratime as it worked through compliance requirements introduced by Nigeria’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, a new licensing and oversight framework for digital lenders. The pause highlighted just how central that one lending product had become to MTN Nigeria’s fintech revenue base.
Notably, the softness wasn’t across the board. Mobile money revenue grew by roughly 132% during the period, and active MoMo wallets climbed by 1.3 million to reach 5 million, suggesting user adoption held up even as lending activity stalled. MTN says Xtratime has since resumed, and CEO Karl Toriola indicated the company expects fintech activity to ramp back up through the second half of the year as operations normalize.
The timing matters beyond the quarterly numbers. MTN Nigeria is in the middle of structurally separating its fintech business, a move investors are watching closely as a path to unlocking standalone value for the unit. Shareholders approved the restructuring in April, which would place MoMo Payment Service Bank Limited and Y’ello Digital Financial Services Limited into a new holding company backed by MTN Group. Under the plan, MTN Group’s fintech investment arm would inject ₦152.06 billion for a 60% stake, with MTN Nigeria retaining the remaining 40%, and both parties consolidating under a new Central Bank of Nigeria, regulated holding structure. The deal remains subject to regulatory sign-off.
Outside fintech, MTN Nigeria had one of its strongest half-year performances on record. Total revenue rose 25.9% to ₦2.99 trillion, driven by 38.39% growth in data revenue and nearly 12% growth in voice revenue. The telco closed the period with 92.2 million subscribers and 55.7 million active data users, and declared an interim dividend of ₦26 per share.
