MTN is preparing to expand into direct lending across several African markets, including Nigeria, as the telecommunications giant seeks regulatory approvals that would enable its fintech division to offer a wider range of financial services.
Speaking at the group’s capital markets event on Wednesday, MTN Group Fintech Chief Executive Officer Serigne Dioum said the company intends to move beyond simply facilitating access to loans and become a lender in its own right where regulations permit.
”We have broadened access to credit for many customers, but we now want to move further up the lending value chain,” Dioum said. “Where appropriate, we will pursue licences that allow us not only to facilitate loans but also to lend directly and utilise our own balance sheet.”
The strategy reflects MTN’s ambition to capture a larger share of Africa’s largely underserved credit market, where access to formal financing remains limited despite rising demand.
A 2025 report by Nigeria’s National Credit Guarantee Company found that almost 80 per cent of micro, small and medium-sized enterprises lack access to formal credit. Separate research by Stears estimates the sector faces a funding shortfall of approximately US$236 billion.
According to Dioum, the challenge extends across the continent, with only about four to five per cent of African adults currently having access to formal credit facilities.
Nigeria remains central to MTN’s plans. Group President and Chief Executive Officer Ralph Mupita revealed that the company is pursuing additional licences in Nigeria and other markets to strengthen its financial services portfolio, although he declined to specify the exact approvals being sought.
”We are pursuing additional licences that will allow us to provide a broader range of financial products and services,” Mupita said. “Nigeria is a key market, but the opportunity stretches across several of our operating countries.”
MTN’s fintech business has emerged as one of the group’s fastest-growing segments. In 2025, the division generated approximately US$2.8 billion in revenue, processed more than US$500 billion in transaction value and handled over 23 billion transactions across its markets.
The company currently serves more than 70 million active MoMo users, works with over two million merchants and supports an agent network exceeding 1.4 million people across Africa.
For MTN, lending is viewed as the next significant growth opportunity.
The company already enables access to loans through partnerships in several countries. Dioum said more than one million people obtain loans through MTN platforms each day, using the funds to support small businesses, purchase stock or cover urgent expenses such as healthcare.
However, becoming a direct lender would provide MTN with greater control over the customer experience while creating additional revenue streams.
The move is also aligned with MTN’s broader outlook for Africa’s fintech sector. The group believes the continent’s fintech revenue pool could increase as much as thirteen-fold over the next five years, driven by the continued digitalisation of financial services.
Despite the rapid growth of fintech, MTN estimates that more than 90 per cent of transactions across Africa are still conducted in cash, highlighting substantial opportunities in payments, remittances and lending.
”Payments, remittances and lending will be the primary drivers of fintech growth over the next five years,” Dioum said.
In Nigeria, MTN has already taken steps to strengthen its fintech footprint. Through its subsidiary, MoMo PSB, the company applied in November 2024 for Payment Solution Service Provider (PSSP) and Payment Terminal Service Provider (PTSP) licences. Mupita confirmed that both applications remain under review.
The PSSP licence would enable MoMo PSB to provide payment gateway services, merchant aggregation and payment processing solutions, while reducing dependence on third-party providers.
The PTSP licence would allow the company to deploy and maintain point-of-sale terminals, develop POS applications and provide training and support to merchants, agents and platform users.
MTN is also awaiting regulatory approval for the planned separation of its fintech business in Nigeria. According to Mupita, shareholders have already approved the restructuring, which is currently being reviewed by the Central Bank of Nigeria.
”These separations are complex,” he said. “The Nigerian structure is relatively novel, and regulators are carefully assessing it to ensure the process is completed in the most tax-efficient manner possible.
