MTN Nigeria's fintech division recorded one of its weakest quarters in recent years after the telecom operator temporarily suspended its airtime and data credit advance service, highlighting the extent to which a single product had come to anchor the unit's growth.

Fintech revenue dropped 72.4% year-on-year to ₦12.99 billion ($9.50 million) in the second quarter of 2026, according to the company's first-half 2026 financial statements. The steep second-quarter decline dragged first-half fintech revenue down 7.2% to ₦77.2 billion ($56.49 million), standing out as one of the few soft spots in an otherwise robust earnings report. Profit after tax surged 70.6% to ₦707.54 billion ($517.69 million).

The downturn followed MTN's temporary suspension of Xtratime on April 16, as the company worked to implement processes required under Nigeria's Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which established a new licensing and compliance framework for digital lenders. The rules require lenders operating in Nigeria to obtain specific licences and adhere to consumer protection standards, affecting not only standalone fintech lenders but also telecom operators offering credit products. MTN rival Airtel also paused its own airtime lending service around the same period. The company has since resumed the service__CORPORATE_ACTIONS_APRIL_2026.pdf).

The results lay bare how reliant MTN Nigeria's fintech business has become on airtime and data credit advance, a product that lets subscribers borrow airtime or data and repay later with a small fee. Although the mobile money operation continued to attract new users, the suspension of one product was sufficient to send the entire fintech division into decline.

"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," said Karl Toriola, MTN Nigeria's Chief Executive Officer.

Mobile money growth continues

Beneath the headline fintech revenue contraction, MTN's underlying mobile money business kept expanding. Mobile money revenue grew by approximately 132%, while active MoMo wallets rose by 1.3 million to reach 5 million during the period, indicating that customer adoption persisted even as lending activity stalled. Nigeria's mobile money market remains highly competitive, with operators such as OPay, Moniepoint, and PalmPay commanding significant user bases, making sustained wallet growth a key metric for MoMo's positioning.

Fintech structural separation advances

The fintech downturn comes at a pivotal moment, as MTN Nigeria advances plans to separate its fintech business — a transaction investors have monitored closely as a means of unlocking the unit's value. The separation would also position the fintech entity to raise capital independently and pursue lending and other financial services licences under the new regulatory regime.

"We also continue to progress the structural separation of the fintech business following shareholder approval, subject to regulatory approvals," the company stated. "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."

In April, shareholders approved a restructuring that will transfer 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 retains the remaining 40%. Both parties would 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, and indicated it was seeking additional lending licences to broaden its fintech product portfolio.

Strong overall half-year performance

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