MTN targets Nigeria for major digital lending push as telecom giant moves deeper into fintech
By Aboki Forex —
MTN is preparing to expand its digital lending operations across Africa, with Nigeria as a key target. The telecom giant says it is seeking new regulatory approvals to lend directly to customers using its own balance sheet, moving beyond its current role of facilitating loans through third parties.
Massive credit gap creates opportunity
Speaking at MTN Group’s Capital Markets Day on Wednesday, MTN Group Fintech CEO Serigne Dioum said lending remains one of the biggest untapped opportunities on the continent. He noted that only about 4% to 5% of African adults currently have access to formal credit.
In Nigeria, the gap is even wider. According to a 2025 report by the National Credit Guarantee Company, nearly 80% of Nigerian Micro, Small and Medium Enterprises lack access to formal credit. Separate estimates from Stears put Nigeria’s MSME funding gap at about $236 billion.
“We’ve expanded access to credit for more people, but we also want to move further up the lending value chain,” Dioum said. “Where appropriate, we will seek licences that allow us not only to facilitate loans but also to lend directly to customers.”
Nigeria at the centre of fintech strategy
MTN Group CEO Ralph Mupita confirmed that Nigeria sits at the centre of the company’s fintech growth strategy. He said the telecom giant is currently pursuing additional licences in Nigeria and several other African markets to broaden its financial services offerings. He declined to disclose the exact licences being sought.
“Nigeria is a key market in this regard, but the opportunity extends across several of our markets,” Mupita said.
The move marks MTN’s latest effort to transform itself from a telecom operator into a full-scale digital financial services provider. The company recently launched its One TV streaming platform in Nigeria.
Fintech division already a powerhouse
MTN Fintech generated about $2.8 billion in revenue in 2025, processing more than $500 billion in transaction value and over 23 billion transactions across its markets. The division now serves more than 70 million active MoMo users, works with over 2 million merchants, and operates through an agent network of more than 1.4 million people across Africa.
According to Dioum, more than one million people already access loans daily through MTN-linked platforms to finance businesses, restock inventory, or handle emergency expenses such as healthcare bills. Becoming a direct lender could significantly boost MTN’s earnings while giving it greater control over customer relationships and loan products.
Regulatory approvals in the works
In Nigeria, MTN has already taken steps to strengthen its fintech footprint through its subsidiary, MoMo PSB. In November 2024, the company applied for Payment Solution Service Provider and Payment Terminal Service Provider licences to deepen its role in digital payments and reduce dependence on third-party processors.
The telecom giant is also awaiting approval from the Central Bank of Nigeria for the structural separation of its fintech business. Mupita described the process as complex but necessary to position MTN for the next phase of fintech growth.
“These separations are complex,” he said. “Regulators are carefully assessing the structure to ensure it is completed in the most tax-efficient manner possible.”
MTN believes payments, remittances, and lending will drive Africa’s next fintech boom as the continent gradually shifts away from cash-based transactions.