MTN Nigeria recorded a significant 57.9% year-on-year jump in its fintech revenue, reaching ₦36.1 billion in Q1 2025, largely fueled by the success of its airtime lending service, Xtratime, and increased float income. This marks a sharp rise from ₦22.7 billion reported in the same quarter of 2024. The growth is attributed to MTN’s renewed fintech strategy that targets high-value customer segments and optimizes user engagement.
The telecom company highlighted that its revamped customer acquisition strategy, launched in Q3 2024, played a pivotal role in the revenue spike. By refining how customers are onboarded and incentivized, MTN was able to deepen service reach and enhance its sales and distribution efficiency. The company’s Q1 report pointed to a more focused approach to acquiring and retaining quality users over sheer volume.
Interestingly, despite the impressive revenue growth, the number of active MoMo wallets dropped by 25.7% to 2.1 million. MTN explained that this dip is a result of its intentional shift toward building a higher-quality user base, rather than simply expanding user numbers. The emphasis now lies in cultivating more engaged and higher-value wallet users within its ecosystem.
Other key performance indicators also showed positive trends. The number of registered agents jumped by 47.7%, and merchant partnerships increased by 23.6% from December 2024 levels. Additionally, float holding—an important measure of digital wallet capacity—rose by 60.3%, reflecting a more stable and transaction-ready financial platform.
CEO Karl Toriola reaffirmed MTN Nigeria’s commitment to long-term fintech growth and digital inclusion. He noted that the company is developing a rural outreach strategy to expand services to underserved communities. With new incentive models and more advanced fintech services in the pipeline, MTN aims to revive wallet activity and reinforce its position as a leading force in Nigeria’s digital financial space.
Source: Business day