MTN Group is exploring the possibility of obtaining banking licences in selected African markets, including potentially Nigeria, as the telecommunications giant seeks to expand its lending business and take greater control of its growing fintech operations.
The group’s Chief Executive Officer, Ralph Mupita, disclosed the plan on Tuesday, saying MTN was assessing markets where it has large customer bases and substantial funds held in mobile money wallets.
The proposed banking structure would allow MTN to accept deposits and, eventually, lend directly from its own balance sheet rather than relying entirely on partnerships with banks and other financial institutions.
Brandspur Banking News Desk reports that MTN currently provides loans to customers through financial-sector partners but is considering a gradual transition to balance-sheet lending in markets where the commercial opportunity is strong. Mupita stressed that the strategy would not automatically apply across all the group’s markets.
Lending has emerged as one of the fastest-growing areas of MTN’s fintech business, alongside payments and e-commerce, increasing the company’s interest in expanding its financial services footprint.
However, moving towards direct lending would expose MTN to additional financial risks. Mupita said the company would therefore take a measured approach, assessing factors such as customer numbers and the volume of money held in mobile wallets before deciding where banking licences would make sense.
The planned expansion comes as MTN seeks to develop new sources of growth beyond its traditional telecommunications operations. Its fintech business has increasingly become a key part of that strategy, with lending identified by the group as a major area of future growth.
MTN is also planning to invest in artificial intelligence infrastructure in Nigeria and South Africa through Africa Data Hub Holding, a venture established with an undisclosed UAE-backed investor.
The venture is expected to develop AI-ready data centres across selected African markets, with the initial phase targeting about 150 megawatts of capacity between Nigeria and South Africa.
MTN will hold a minority stake in the venture, while its UAE-backed partner is expected to contribute most of the funding and technical expertise, based on its experience developing data-centre infrastructure in the Gulf region.
For Nigeria, the proposed data-centre investment could strengthen the country’s capacity to support businesses and digital services requiring large-scale computing infrastructure, while MTN’s potential move into banking could further expand access to financial services for its extensive customer base.
