MTN Nigeria's fintech revenue falls after Xtratime suspension

The telecom operator says the service has resumed after pausing it to comply with Nigeria’s new digital lending regulations. MTN Nigeria’s fintech business reported a sharp drop in revenue during the second quarter after the company suspended its Xtratime airtime and data credit service earlier this year. Fintech revenue fell 72.4% year on year to ₦12.99 billion ($9.5 million), while revenue for the first six months of 2026 declined 7.2% to ₦77.2 billion ($56.5 million), according to the company’s half-year financial results. The decline followed MTN Nigeria’s decision to pause Xtratime on 16 April as it aligned the service with the country’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

New lending rules affect fintech revenue

The latest results show how much the Xtratime service contributes to MTN Nigeria’s fintech business. Although the company’s mobile money platform continued to add users during the reporting period, the temporary suspension of the lending service pushed fintech revenue sharply lower. MTN Nigeria has since resumed Xtratime and expects activity in the fintech business to improve during the second half of the year. Chief Executive Officer Karl Toriola said the company expects customer activity to increase now that the service is back online.

Mobile money adds more users

While fintech revenue declined, MTN Nigeria recorded strong growth in its mobile money business. Mobile money revenue increased by about 132%, while active MoMo wallets grew by 1.3 million to reach 5 million. The figures indicate that customers continued adopting MTN’s payment services despite the interruption to its lending product. The company is also working to separate its fintech business into a new holding structure following shareholder approval earlier this year. The proposed restructuring will place MoMo Payment Service Bank Limited and Y’ello Digital Financial Services Limited under a Central Bank of Nigeria-regulated holding company. MTN Group plans to invest ₦152.06 billion ($110.5 million) through its fintech investment arm for a 60% stake in the business, while MTN Nigeria will retain the remaining 40%. The transaction remains subject to regulatory approval.

Core telecom business drives earnings

Outside fintech, MTN Nigeria reported stronger growth across its telecommunications business. Total revenue rose 25.9% to ₦2.99 trillion ($2.19 billion), driven by higher demand for data services. Data revenue increased 38.4%, while voice revenue grew 12%. By the end of the reporting period, MTN Nigeria had 92.2 million subscribers and 55.7 million active data users. The company also declared an interim dividend of ₦26 per share.