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MTN Nigeria has reported a 57.9 percent year-on-year increase in its fintech revenue, reaching N36.1 billion in the first quarter of 2025, up from N22.7 billion in the same period last year.
The growth, highlighted in the company’s Q1 financial results, was primarily driven by a strong performance in its airtime lending service, Xtratime, and a notable increase in float income.
The telecom giant attributed the revenue boost to a strategic shift in its fintech approach, particularly the onboarding of more high-value customers.
“The revamp of our customer acquisition strategy, which commenced in Q3 2024, allowed us to optimise our incentives and customer engagement framework,” the company said in its report. “This restructuring aimed to deepen service penetration and enhance monitoring across its sales and distribution network.”
Read also: MTN declares profit of N133.7bn, first since 2023
Despite the revenue surge, the number of active MoMo wallets saw a 25.7 percent decline, dropping to 2.1 million as of March 2025. However, the company emphasised that this reduction was part of a broader strategy to improve the quality of its digital ecosystem by focusing on higher-value, more active users.
In contrast, MTN Nigeria reported significant growth in other key metrics: agent numbers rose by 47.7 percent and merchant partners by 23.6 percent compared to December 2024. Additionally, float holding, a critical indicator of wallet transaction capacity, grew by 60.3 percent, signalling a healthier, more stable financial platform.
Karl Toriola, MTN Nigeria, chief executive officer, said, “Our fintech strategy recalibration was well-advanced during the quarter, with a deliberate focus on enhancing the quality of our ecosystem. While it resulted in a short-term reduction in active wallets, it strengthened the foundation for long-term sustainability and growth.”
Toriola also reaffirmed the company’s commitment to financial inclusion, revealing plans to expand fintech services to rural and underserved communities. “As part of our long-term ambition, we are launching a rural penetration strategy aimed at expanding access to financial services for financially excluded populations,” he added.
Looking ahead, MTN Nigeria is optimistic about reversing the decline in wallet activity through refined incentive structures and the rollout of advanced fintech offerings. The company expects these initiatives to accelerate wallet growth and solidify its position as a key driver of digital financial inclusion in Nigeria.
