MTN Nigeria’s fintech business delivered a standout performance in the first nine months of 2025, generating ₦131.62 billion (about US $91.64 million) in revenue. The bulk of that came from its airtime-lending product, known as XtraTime.
Airtime Lending Drives the Surge
MTN Nigeria serves roughly 89.64 million subscribers, which gives it a large active pool for its XtraTime offering. The product allows users to borrow airtime when they run out of credit, tapping a micro-loan style convenience embedded in the telco’s service. Because the subscriber base is massive, small loans multiplied across millions of users add up to major revenue.
The telco’s internal figures show that the “core fintech” segment excluding XtraTime, yielded only ₦6.8 billion for the period, up a notable 142.86 % from about ₦2.8 billion the previous year. While strong growth, it remains a small slice compared to airtime-loan revenues.
The Opportunity and Risk In The Fintech Strategy
MTN’s management acknowledges that while airtime lending offers fast growth, it cannot serve as the long-term foundation for its fintech ambitions. On an investors’ call, CEO Karl Toriola said the company sees “substantial opportunities for growth and diversification” by stepping into “advanced services, expanding our ecosystem, and deepening customer engagement.”
MTN is thus focusing on developing value-added services, boosting agent and merchant networks, and capturing high-value customers. However, the penetration of its mobile-money wallet remains weak only about 2.9 million active users or roughly 3.2 % of its subscriber base use its MoMo wallet service.
Competitive Landscape and Challenges
In Nigeria’s crowded fintech field, telco-backed offerings like MTN’s face stiff competition from mobile-money operators such as OPay and PalmPay, which already command large user bases and transaction volumes. MTN must convert its huge subscriber base into active fintech customers rather than rely on airtime loans alone.
Regulatory oversight also looms as a potential headwind. Airtime-lending models raise questions around interest rates, consumer protection and how they fit into broader financial-services regulation. Sustaining growth via a lending product tied directly to airtime may face scrutiny or require adjustment.
What’s Next for MTN’s Fintech Growth?
To move beyond the airtime-loan driver, MTN plans to scale agent networks and merchant acceptance, increase usage of its MoMo wallet, and expand offerings in digital payments, remittances and value-chain finance. It targets a shift toward more sustainable fintech revenue sources and deeper customer loyalty.
The key test will lie in whether the company can turn its vast subscriber base into a vibrant fintech platform, turning momentary gains into structural advantage. For now, the airtime-lending boom has positioned MTN’s fintech business as a serious player but the next chapter demands evolution
