MTN Group is accelerating plans to transform its mobile money business into a broader financial services platform, with Nigeria emerging as a key market in the company’s strategy to expand digital lending, payments, remittances and merchant services across Africa.
The telecommunications giant disclosed that its MoMo platform processed more than $500 billion in transactions during 2025, highlighting the growing scale of its fintech operations as it seeks to deepen its presence in underserved financial markets and attract new strategic investors.
As part of the expansion, MTN is finalising the separation of its fintech businesses in Nigeria and Uganda, a move designed to unlock investment opportunities and strengthen the independence of its digital finance operations. Brandspur Banking News Desk reports that the restructuring is also expected to support ongoing engagements with global payment technology partners and potential minority investors.
Company executives said the separation process remains a critical step in positioning the fintech units for future growth while preserving shareholder value. MTN has indicated it is open to selling minority stakes in the businesses as it seeks additional capital and expertise to support expansion plans.
Nigeria has become a major focus because of its large population, growing digital economy and persistent financing challenges faced by small and medium-sized enterprises. Industry estimates indicate that a significant proportion of Nigerian businesses remain excluded from formal lending channels, creating a funding shortfall valued at approximately $236 billion.
To strengthen its competitive position, MTN is pursuing additional regulatory approvals through its MoMo Payment Service Bank subsidiary. The company is seeking licences that would allow it to broaden payment processing capabilities, expand merchant payment solutions and increase its role in point-of-sale infrastructure.
The licensing push comes as competition intensifies among banks, fintech companies and telecommunications operators seeking a larger share of Nigeria’s rapidly growing digital payments market. Firms such as OPay and PalmPay have gained significant traction in recent years through agency banking, transfers and payment services.
MTN’s longer-term ambition extends beyond facilitating financial transactions. The company is exploring opportunities to move directly into lending in markets where regulations permit, enabling it to provide credit using its own balance sheet rather than relying solely on third-party lending partnerships.
Such a shift could significantly increase revenue opportunities for the group while also introducing new regulatory obligations and credit risk exposure. However, the company believes the opportunity remains substantial, particularly in markets where access to formal credit remains limited.
Across many African countries, millions of individuals and small businesses continue to face barriers when seeking loans for working capital, inventory purchases or emergency financial needs. Expanding access to digital credit has therefore become a major focus for financial technology providers.
MTN’s fintech operations have already reached considerable scale. During 2025, transaction volumes exceeded 23 billion while monthly active MoMo users approached 70 million across the company’s operating markets, reflecting increasing adoption of digital financial services.
The company’s fintech ambitions are also supported by strategic partnerships. Its ongoing relationship with Mastercard forms part of broader efforts to attract investment and strengthen its payments ecosystem, while collaboration with Ant Group’s Alipay is expected to enhance merchant services and improve digital finance capabilities.
Industry analysts view Africa’s mobile money sector as one of the most attractive growth opportunities in global fintech, particularly as cash remains dominant across many economies and banking penetration remains relatively low compared with developed markets.
Meanwhile, competition continues to intensify. Airtel Africa is also pursuing plans to unlock value from its Airtel Money business, drawing increased investor attention to the continent’s mobile money industry and the growing importance of telecom-led financial services.
The pace of MTN’s expansion will largely depend on regulatory approvals, investor participation and successful execution of its restructuring plans. If approvals are secured, the company could significantly increase its presence in merchant payments, remittances, digital lending and other higher-value financial services.
With digital payments adoption accelerating across Africa and demand for accessible credit continuing to rise, MTN is positioning MoMo to become a central platform for how consumers and businesses transact, borrow and manage money in the years ahead.
