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MTN Nigeria’s fintech business suffered a sharp decline in the second quarter of 2026 following the suspension of its popular Xtratime airtime and data lending service, underscoring the telecom operator’s heavy reliance on the product despite growing momentum in its mobile money business.
The company’s latest financial results show that fintech revenue dropped 72.4% year-on-year in the second quarter, largely because income generated from airtime lending disappeared after the service was temporarily halted in April in response to new regulatory requirements.
Regulatory Pause Hits a Key Revenue Driver
MTN suspended its Xtratime service after the introduction of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, which require providers of digital lending services to obtain additional regulatory approvals.
The temporary suspension removed one of MTN’s most profitable fintech offerings, significantly reducing revenue from the segment during the quarter. Before the regulatory action, airtime and data lending had become a major contributor to the telecom operator’s digital financial services business.
MoMo Business Continues to Gain Ground
Despite the setback, MTN’s broader fintech ambitions remain intact.
The company reported continued growth in its MoMo (Mobile Money) business, with transaction volumes and wallet adoption increasing during the reporting period. Revenue generated from mobile money services more than doubled, reflecting stronger customer adoption of digital payment solutions even as the overall fintech division came under pressure from the Xtratime suspension.
The figures suggest MTN’s long-term strategy of expanding beyond telecommunications into financial services is still gaining traction, although the company continues to depend heavily on lending-related income while building its payments ecosystem.
Reducing Dependence on Airtime Lending
Industry analysts say the latest results expose the concentration risk within MTN’s fintech operations.
Although the company has made significant investments in mobile money, merchant payments and digital financial services, airtime lending has remained one of its strongest revenue generators. The temporary loss of that business line immediately translated into a sharp decline in fintech earnings.
The performance reinforces MTN’s broader strategy of diversifying revenue through services such as digital payments, enterprise solutions, value-chain digitisation and cross-border financial services rather than relying predominantly on short-term consumer credit.
Regulatory Changes Reshape Digital Lending
The suspension also reflects broader regulatory efforts to strengthen oversight of Nigeria’s digital lending industry.
The FCCPC’s new framework seeks to improve consumer protection by requiring operators offering digital credit products to comply with stricter licensing and operational standards.
While telecom operators initially paused airtime and data lending services to comply with the regulations, industry stakeholders expect normal operations to resume once outstanding regulatory requirements are fully addressed.
Strong Group Performance Cushions Fintech Weakness
Although fintech revenue weakened considerably, the decline had only a limited impact on MTN Nigeria’s overall financial performance.
The telecom operator recently reported a record ₦707.5 billion profit after tax for the first half of 2026, driven by robust growth in data revenue, expanding smartphone penetration and improved operating efficiency.
Data services remain MTN’s largest growth engine, while voice revenue also continued to expand, helping offset the temporary weakness in fintech earnings.
Long-Term Digital Finance Strategy Remains Intact
Despite the short-term revenue decline, MTN has reiterated its commitment to growing its fintech business as part of its long-term diversification strategy.
The company continues to invest in mobile money infrastructure, digital payment services and financial inclusion initiatives, positioning MoMo as a key pillar of future growth.
As Nigeria’s digital finance ecosystem evolves under tighter regulatory oversight, MTN is expected to place greater emphasis on expanding payment services and institutional financial solutions while reducing its dependence on airtime lending.
For investors and industry observers, the latest results illustrate both the opportunities and risks within telecom-led fintech businesses: while regulatory changes can disrupt established revenue streams, the continued expansion of mobile money services suggests MTN remains well positioned to capitalise on Africa’s growing digital payments market.
